Public Company Reporting and Earnings

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Question

When are contingently issuable shares included in basic EPS?

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Answer

Only when all conditions are satisfied.

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Question

What does Form 8-K report?

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Answer

Material events between periodic filings.

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Question

Why are potentially dilutive securities tested sequentially?

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Answer

Because each addition must still reduce diluted EPS.

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Question

How does the if-converted method treat convertible debt?

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Answer

Add common shares and add back after-tax interest.

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