Earnings per Share Workpaper: Basic, Diluted and Two-Class EPS
Computes basic and diluted EPS from a dated share-activity log: time-weighted shares, the two-class method for participating securities, the treasury stock method for options, warrants and RSUs, and the if-converted method with most-to-least-dilutive sequencing – tied to the filing to the cent.
Tab structure
- Instructions
- Setup
- Summary & Tie-out
- Share Activity – dated issuances, repurchases and conversions; weighted-average shares calculate from the dates; shares at period end tie to the balance sheet
- EPS Computation – current and comparative YTD and, in a 10-Q, quarter columns: numerators, two-class allocation, basic and diluted shares, EPS for continuing operations and net income, ties to the filing draft
- Dilutive Securities – treasury stock method (assumed proceeds include unrecognized compensation) and if-converted method with antidilution sequencing
- Judgments
- Completeness & Controls
- Open Items
- Sign-offs & Refs
- Tickmarks
- Lists
Built on the common workpaper framework – see the templates overview.
Key checks and flags
- A loss from continuing operations makes every potential share antidilutive (the control number, ASC 260-10-45-19)
- Convertibles are included one at a time, most dilutive first, only while they reduce EPS (ASC 260-10-45-18)
- Diluted EPS never above basic; basic and diluted EPS agree to the filing draft rounded to cents
- Antidilutive securities excluded are totalled for the note (ASC 260-10-50-1(c))
- Each period computed on its own – quarters are not summed to the year
- Share-log entries before the base date or after period end are flagged
Who uses it
Preparer and reviewer of EPS on the face of the income statement, the EPS note and the share counts on the cover page.
Primary sources
Previews
Rendered from the actual workbook with illustrative sample data ("Example Company, Inc.", period end December 31, 2026). Scroll sideways on small screens.
EPS Computation
EPS Computation tab: two-class allocation, basic and diluted shares.
Dilutive Securities
Dilutive Securities tab: treasury stock method rows with their status.