Learning objectives (with links to notes embedded)

• LO8B-01: Explain and implement the accounting for restricted stock plans.

• LO8B-02: Explain and implement the accounting for stock options.

• LO8B-03: Explain and implement the accounting for employee share purchase plans.

• LO8B-04: Distinguish between a simple and a complex capital structure.

• LO8B-05: Describe what is meant by the weighted-average number of common shares.

• LO8B-06: Differentiate between the effect on EPS of the sale of new shares, a stock dividend or stock split, and the reacquisition of shares.

• LO8B-07: Describe how preferred dividends affect the calculation of EPS.

• LO8B-08: Describe how options, rights, and warrants are incorporated in the calculation of EPS.

• LO8B-09: Describe how convertible securities are incorporated in the calculation of EPS.

• LO8B-10: Determine whether potential common shares are antidilutive.

• LO8B-11: Describe the two components of the proceeds used in the treasury stock method and how restricted stock is incorporated in the calculation of EPS.

• LO8B-12: Explain the way contingently issuable shares are incorporated in the calculation of EPS.

• LO8B-13: Discuss the way EPS information should be reported in an income statement.

• LO8B-14: Discuss the primary differences between U.S. GAAP and IFRS with respect to accounting for share-based compensation and earnings per share.