Public company reporting: EPS, interim reporting, segments and SEC forms

The rules, one page each

1. Who Must Present EPS and Which Amounts Are Required Under GAAP?Contrasting cases

   Publicly traded common or potential common stock, or statements included in a public offering filing for either, triggers EPS. Show basic EPS for continuing operations and net income on the face; add diluted EPS for a complex capital structure.

2. Diluted EPS with discontinued operations: use continuing operations as the control numberContrasting cases

   Under ASC 260, potential common shares are included in diluted EPS only if they decrease EPS or increase loss per share when applied to income from continuing operations. Use income from continuing operations as the control number even if net income is positive due to a discontinued operation.

3. How to Calculate Basic and Diluted EPSWorked example

   Basic EPS equals income available to common divided by weighted-average common shares. For diluted EPS, include only dilutive potential common shares, using treasury-stock and if-converted methods from most to least dilutive.

4. Interim Income Taxes: Annual ETR vs. Discrete ItemsStep by step

   Apply the estimated annual effective tax rate to year-to-date ordinary pretax income from continuing operations. Recognize discrete tax effects separately in the period they occur; current-quarter tax equals cumulative tax less tax recognized in prior quarters.

5. Interim Reporting: Allocate Costs or Expense When Incurred?Sort it

   Apply annual GAAP recognition and measurement principles. Allocate annual property taxes and probable, reasonably estimable bonuses to periods benefited or services rendered; recognize discrete losses when incurred, and do not accrue future activities without a present obligation.

6. Form 10-Q Requirements: Financial Statements, Notes, and MD&AStep by step

   A standard Form 10-Q includes unaudited condensed interim statements, required comparatives, and notes updating material changes since year-end. MD&A addresses known trends or uncertainties reasonably likely to materially affect results, liquidity, or capital resources.

7. Form 8-K Deadlines: Agreements, Departures, and Non-RelianceTimeline

   An Item 1.01 agreement, reportable Item 5.02 departure, or Item 4.02 non-reliance conclusion generally requires Form 8-K within four business days after the trigger. The next business day is day one.

8. ASC 280: Identify Operating and Reportable SegmentsStep by step

   Identify operating segments by business activities, discrete financial information, and regular CODM review. Report segments meeting any 10% revenue, profit or loss, or asset test; add segments until they cover at least 75% of consolidated external revenue.