Intermediate Accounting II: Professor Alexander Sannella Lecture #8 Simple and Complex Capital Structure & Antidilutions April 3, 2014 Please Visit Our Website at http://raw.rutgers.edu. Time Stamps: 0:30 Stock Split 2:07 Simple and Complex Capital Structure The need for and the extent of the adjustments to the basic EPS ratio will depend on whether the film is considered to have a Simple and Complex Capital Structure 2:25 Simple Capital Structure A firm is consider to have a Simple Capital Structure if it only issues common and preferred stock, with no potentially dilutive securities. Only a basic or unadjusted EPS disclosure is required, known as Single Presentation 2:32 Complex Capital Structure Then you have Common Stock, Preferred Stock, and potentially dilutive securities as... A Dual presentation is Required, unless the results are antidilutive 8:30 BEPS (Basic EPS) and DEPS (Diluted EPS) Models 23:58 The Effective Tax Rate 24:40 EPS Illustration: The "If Converted" Assumptions 45:17 Data for Questions 4 and 5 53:36 Data for Questions 4 and 5 1:02:09 Incremental Share Computation: Simple Total Proceeds Methods The Simple proceeds methods can only be applied if: -All Employee options are fully vested at the time of the EPS computation -All employee options are qualified so that there are no tax consequences from the assumed option exercise under the treasury stock method 1:03:34 Incremental Shares = ((Average Market Price - Exercise Price) / Average Price ) x Shares Assumed Issued 1:13:55 Complex Definition of Total Proceeds 1:25:53 Antidilutions 1:26:47 Two Accounting Issues Involved with Antidilutions (or Diutions) 1:34:24 Computations (Simple Total Proceeds) 1:45:00 Net loss Per Share: Second Issue for antidilution (or Dilution): Income Level to Use to test for dilution in Consulting Operations Please subscribe to our channel to get the latest updates on the RU digital library.

• published: 15 Apr 2014
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