# ASC 260-10-15: Earnings Per Share — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/260/10/#15-scope-and-scope-exceptions) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:18:51.891Z to 2026-09-09T23:18:51.891Z Record version: sha256:4ff0f6dc093765e58ff6c796c9e484b6ff674c5bf027340ede6a9fda446d810b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 260-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/260/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [260-10-15-1](https://asc.understandingaccounting.org/asc/260/10/#260-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:18:51.891Z to 2026-09-09T23:18:51.891Z Record version: sha256:5d6245591597e2028faf84caeecc4ad51361a471b03cae1f93e874c1d1d00104 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for the [Earnings per Share](https://asc.understandingaccounting.org/glossary/e/#earnings-per-share "The amount of earnings attributable to each share of common stock. For convenience, the term is used to refer to either earnings or loss per share.") Topic. #### Entities ##### [260-10-15-2](https://asc.understandingaccounting.org/asc/260/10/#260-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:18:51.891Z to 2026-09-09T23:18:51.891Z Record version: sha256:c9c601e39e608cb69c47608b3085e26541bb2fe16b7f63a55630d51b1b60339c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Earnings per Share Topic requires presentation of earnings per share (EPS) by all entities that have issued [common stock](https://asc.understandingaccounting.org/glossary/c/#common-stock "A stock that is subordinate to all other stock of the issuer. Also called common shares.") or [potential common stock](https://asc.understandingaccounting.org/glossary/p/#potential-common-stock "A security or other contract that may entitle its holder to obtain common stock during the reporting period or after the end of the reporting period.") (that is, securities such as [options](https://asc.understandingaccounting.org/glossary/o/#option "Unless otherwise stated, a call option that gives the holder the right to purchase shares of common stock from the reporting entity in accordance with an agreement upon payment of a specified amount. Options include, but are not limited to, options granted and stock purchase agreements entered into with grantees. Options are considered securities. See Call Option."), warrants, convertible securities, or contingent stock agreements) if those securities trade in a public market either on a stock exchange (domestic or foreign) or in the over-the-counter market, including securities quoted only locally or regionally. This Topic also requires presentation of EPS by an entity that has made a filing or is in the process of filing with a regulatory agency in preparation for the sale of those securities in a public market. ##### [260-10-15-3](https://asc.understandingaccounting.org/asc/260/10/#260-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:18:51.891Z to 2026-09-09T23:18:51.891Z Record version: sha256:903b198b52f657bbda2806e46a2c32f9f8263c8be818f17713684e4d57ee4256 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not require presentation of EPS for investment companies that comply with the requirements of Topic 946 or in statements of wholly owned subsidiaries. Any entity that is not required to present EPS in its financial statements that chooses to present EPS in its financial statements shall do so in accordance with the provisions of this Topic. ### Master Limited Partnerships #### Overall Guidance ##### [260-10-15-4](https://asc.understandingaccounting.org/asc/260/10/#260-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:18:51.891Z to 2026-09-09T23:18:51.891Z Record version: sha256:1295cbcb4776c89b8ccde6729e9d5df65521ae831d9678fd75a5d5562b7d47c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Master Limited Partnership Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic. See paragraphs [260-10-15-1 through 15-3](https://asc.understandingaccounting.org/asc/260/10/#260-10-15-1) , with specific qualifications noted in the following paragraph. #### Entities ##### [260-10-15-5](https://asc.understandingaccounting.org/asc/260/10/#260-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:18:51.891Z to 2026-09-09T23:18:51.891Z Record version: sha256:26964e7c0fbda533818ef1cc5e1f8779078c4f7454bf1e557ed3e942e071b478 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A master limited partnership may issue incentive distribution rights that are a separate class of nonvoting limited partner interest that the general partner initially holds or incentive distribution rights that are embedded in the general partner interest and therefore cannot be detached or transferred apart from the general partner's overall interest. Incentive distribution rights that are a separate class of non-voting limited partner interest generally may be transferred or sold apart from the general partner interest. The Master Limited Partnership Subsections apply to all master limited partnerships that meet both of the following criteria: 1. a The partnership is required to make incentive distributions when certain thresholds have been met (regardless of whether the incentive distribution rights are a separate limited partner interest or embedded in the general partner interest) 2. b The partnership accounts for the incentive distributions as equity distributions (as opposed to compensation costs). The determination of whether the incentive distribution is an equity distribution or compensation cost is outside the scope of the Master Limited Partnership Subsection.