While some convergence has been achieved, IFRS still differs from U.S.GAAP in earnings per share measurement in all of the following ways except
A)the calculation of basic earnings per share
B)the application of the treasury stock method
C)treatment of contingently issuable shares
D)treatment of contracts that may be settled in shares or cash

Question

Quizplus · Accepted Answer

Both IFRS and U.S. GAAP use the same formula to calculate basic earnings per share (EPS), which is net income divided by the weighted average number of shares outstanding during the period. Therefore, choice A is incorrect. Choices B, C, and D are correct, as they are areas where IFRS and U.S. GAAP differ in EPS measurement. The treasury stock method is used differently in both standards, contingently issuable shares are treated differently, and contracts that may be settled in shares or cash are accounted for differently under the two standards.

While Some Convergence Has Been Achieved, IFRS Still Differs from U.S.GAAP