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CFA Program Financial Reporting and Analysis
CFA Program Financial Reporting and Analysis Coaching:
EPS: It is that portion of company's profit which is allocated to each outstanding common equity holders. It serves as a profitability measure. Basic eps does not into account the dilutive effect of convertible securities.

Dilutive Eps is calculated after taking into account the effect of all the potential convertible securities.

Question on EPS is very testable in the exam, so we suggest you to learn this concept very carefully (it's little tricky but easy).
Important readings for exam!
  • Financial Statement Analysis: An Introduction
  • Financial Reporting Mechanics
  • Financial Reporting Standards
  • Understanding Income Statements
  • Understanding Balance Sheets
  • Understanding Cash Flow Statements
  • Financial Analysis Techniques
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