Earnings per share (EPS)

The net profit attributable to ordinary shareholders divided by weighted average number of ordinary shares ( www.practicallaw.com/2-107-6941) in issue. A fully diluted EPS calculation means that the figure is adjusted to take account of shares that will be issued under options ( www.practicallaw.com/0-107-6937) or convertible securities ( www.practicallaw.com/4-107-5993) because they will reduce the future earnings attributable to each share when they are issued. The performance of listed companies is often measured by EPS. The accounting standards for EPS reporting are Financial Reporting Standard (FRS) ( www.practicallaw.com/1-107-5758) 22 and International Accounting Standard (IAS) ( www.practicallaw.com/6-107-6722) 33.

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