Accounting for Diluted Shares and Earnings per Share

Name: Accounting for Diluted Shares and Earnings per Share
Rating: 5.00 (3 reviews)

Calculating a company’s diluted shares outstanding is one of the most fundamental concepts in finance and accounting. The diluted share count is used in valuation as well as earnings per share.

Review the difference between basic shares and diluted shares.
Identify the most common dilutive securities.
Understand the necessary adjustments when calculating a company’s diluted shares outstanding.

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Corporate Finance Institute

Accounting for Diluted Shares and Earnings per Share

Overview

Accounting for Diluted Shares & Earnings per Share Course Overview

One of the most challenging topics in finance and accounting is calculating a company’s diluted share count and earnings per share. But it’s absolutely crucial to master this since the diluted share count is necessary to calculate earnings per share and is also used when valuing a company. In this course, we’ll cover the most common types of dilutive securities and how to account for these. We’ll also discuss other common adjustments to consider when calculating diluted shares.

Accounting for Diluted Shares & Earnings per Share Learning Objectives

Upon completing this course, you will be able to:

Understand the difference between authorized, issued, and outstanding shares.
Basic EPS vs Diluted EPS The most common potentially dilutive securities.
Applying the Treasury Stock Method.
The If-Converted Method and related adjustments.
Dealing with stock splits.

Who Should Take This Course?

Accounting is the language of business so it’s critical for finance professionals to have a solid understanding of different accounting rules and conventions since these can lead to different financial results. This course is perfect for anyone that uses financial statements, including investment bankers, equity research analysts, and financial planning and analysis (FP&A) professionals.

Courses we recommend you take in advance

These prerequisite courses are optional, but we recommend you complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

What you'll learn

Lesson

Multimedia

Exams

Files

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

Financial Modeling & Valuation Analyst (FMVA®) Certification

Skills Learned Financial modeling and valuation, sensitivity analysis, strategy
Career Prep Investment banking and equity research, FP&A, corporate development

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Accounting for Financial Analysts Specialization

Skills learned Accounting, Financial Analysis, Reading Financial Statements and more
Career prep Financial Planning & Analysis (FP&A), Corporate Development, Investment Banking, Private Equity, Equity Research, and more.

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What Our Members Say

Great Learning Experience

Good course. Helps learns with a financial models in excel which also makes it easier to learn and retain information.

Abhinav Anand

Very Informative and structured Course. Thanks a lot to CFI team.

Anamul Haque

Incredibly helpful and well-structured

I found this Corporate Finance Institute (CFI) presentation on Accounting for Diluted Shares and EPS to be incredibly helpful and well-structured. The clear explanations of complex concepts like basic vs. diluted EPS, the treasury stock method, and the if-converted method were particularly valuable. The use of visuals, such as diagrams and flowcharts, made the information easily digestible and reinforced key takeaways. The instructor, Scott, boasts impressive credentials, and his expertise shines through in the material's depth and accuracy. I appreciated the practical examples and the step-by-step breakdown of calculations, which made the concepts easy to understand and apply. The inclusion of different types of dilutive securities and their respective treatments was comprehensive and thorough. The presentation's pacing was excellent; it didn't rush through complex topics, allowing ample time for comprehension. The learning objectives were clearly stated upfront and effectively addressed throughout the presentation. Overall, this is a fantastic resource for anyone looking to improve their understanding of diluted shares and EPS calculations. I highly recommend it.

Dr Gregory Gray Jr

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All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements

Can I download the Excel files and financial modeling templates for the course?

Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.

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Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.

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Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment

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Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.

Accounting for Diluted Shares and Earnings per Share

Accounting for Diluted Shares & Earnings per Share Course Overview

Accounting for Diluted Shares & Earnings per Share Learning Objectives

Who Should Take This Course?

Courses we recommend you take in advance