# ASC 260-10-50: Earnings Per Share — Overall — 50 Disclosure Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/260/10/#50-disclosure) 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): 2026-09-09T23:19:09.996Z to 2026-09-09T23:19:09.996Z Record version: sha256:eefce6b0e4f5330d39998c4d8035a19a5fd0afad34fb60065a748ffbc2ad6797 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 260-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/260/10/#50-disclosure) SEC content: no ##### [260-10-50-1](https://asc.understandingaccounting.org/asc/260/10/#260-10-50-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:09.996Z to 2026-09-09T23:19:09.996Z Record version: sha256:30781b71d4be2a46370670a7137be5c8f7be6c668619ee60c4bfb0981648f389 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each period for which an income statement is presented, an entity shall disclose all of the following: 1. a A reconciliation of the numerators and the denominators of the basic and diluted per-share computations for income from continuing operations. The reconciliation shall include the individual income and share amount effects of all securities that affect [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.") (EPS). Example 2 (see paragraph [260-10-55-51](https://asc.understandingaccounting.org/asc/260/10/#260-10-55-51)) illustrates that disclosure. (See paragraph [260-10-45-3](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-3).) An entity is encouraged to refer to pertinent information about securities included in the EPS computations that is provided elsewhere in the financial statements as prescribed by Subtopic 505-10. 2. b The effect that has been given to preferred dividends in arriving at [income available to common stockholders](https://asc.understandingaccounting.org/glossary/i/#income-available-to-common-stockholders "Income (or loss) from continuing operations or net income (or net loss) adjusted for preferred stock dividends.") in computing basic EPS. 3. c Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period(s) presented. Full disclosure of the terms and conditions of these securities is required even if a [security](https://asc.understandingaccounting.org/glossary/s/#security "The evidence of debt or ownership or a related right. It includes options and warrants as well as debt and stock.") is not included in diluted EPS in the current period. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)For each period for which an income statement is presented, including interim periods, an entity shall disclose all of the following: 1. a A reconciliation of the numerators and the denominators of the basic and diluted per-share computations for income from continuing operations. The reconciliation shall include the individual income and share amount effects of all securities that affect [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.") (EPS). Example 2 (see paragraph [260-10-55-51](https://asc.understandingaccounting.org/asc/260/10/#260-10-55-51)) illustrates that disclosure. (See paragraph [260-10-45-3](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-3).) An entity is encouraged to refer to pertinent information about securities included in the EPS computations that is provided elsewhere in the financial statements as prescribed by Subtopic 505-10. 2. b The effect that has been given to preferred dividends in arriving at [income available to common stockholders](https://asc.understandingaccounting.org/glossary/i/#income-available-to-common-stockholders "Income (or loss) from continuing operations or net income (or net loss) adjusted for preferred stock dividends.") in computing basic EPS. 3. c Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period(s) presented. Full disclosure of the terms and conditions of these securities is required even if a [security](https://asc.understandingaccounting.org/glossary/s/#security "The evidence of debt or ownership or a related right. It includes options and warrants as well as debt and stock.") is not included in diluted EPS in the current period. 4. d The methods used in the diluted EPS computation for each type of dilutive instrument (for example, [treasury stock method](https://asc.understandingaccounting.org/glossary/t/#treasury-stock-method "A method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period."), [if-converted method](https://asc.understandingaccounting.org/glossary/i/#if-converted-method "A method of computing EPS data that assumes conversion of convertible securities at the beginning of the reporting period (or at time of issuance, if later)."), two-class method, or [reverse treasury stock method](https://asc.understandingaccounting.org/glossary/r/#reverse-treasury-stock-method "A method of recognizing the dilutive effect on EPS of satisfying a put obligation. It assumes that the proceeds used to buy back common stock (pursuant to the terms of a put option) will be raised from issuing shares at the average market price during the period. See Put Option.")). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For each period for which an income statement is presented, including interim periods, an entity shall disclose all of the following: 1. a A reconciliation of the numerators and the denominators of the basic and diluted per-share computations for income from continuing operations. The reconciliation shall include the individual income and share amount effects of all securities that affect [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.") (EPS). Example 2 (see paragraph [260-10-55-51](https://asc.understandingaccounting.org/asc/260/10/#260-10-55-51)) illustrates that disclosure. (See paragraph [260-10-45-3](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-3).) An entity is encouraged to refer to pertinent information about securities included in the EPS computations that is provided elsewhere in the financial statements as prescribed by Subtopic 505-10. 2. b The effect that has been given to preferred dividends in arriving at [income available to common stockholders](https://asc.understandingaccounting.org/glossary/i/#income-available-to-common-stockholders "Income (or loss) from continuing operations or net income (or net loss) adjusted for preferred stock dividends.") in computing basic EPS. 3. c Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic EPS in the future that were not included in the computation of diluted EPS because to do so would have been antidilutive for the period(s) presented. Full disclosure of the terms and conditions of these securities is required even if a [security](https://asc.understandingaccounting.org/glossary/s/#security "The evidence of debt or ownership or a related right. It includes options and warrants as well as debt and stock.") is not included in diluted EPS in the current period. 4. d The methods used in the diluted EPS computation for each type of dilutive instrument (for example, [treasury stock method](https://asc.understandingaccounting.org/glossary/t/#treasury-stock-method "A method of recognizing the use of proceeds that could be obtained upon exercise of options and warrants in computing diluted EPS. It assumes that any proceeds would be used to purchase common stock at the average market price during the period."), [if-converted method](https://asc.understandingaccounting.org/glossary/i/#if-converted-method "A method of computing EPS data that assumes conversion of convertible securities at the beginning of the reporting period (or at time of issuance, if later)."), two-class method, or [reverse treasury stock method](https://asc.understandingaccounting.org/glossary/r/#reverse-treasury-stock-method "A method of recognizing the dilutive effect on EPS of satisfying a put obligation. It assumes that the proceeds used to buy back common stock (pursuant to the terms of a put option) will be raised from issuing shares at the average market price during the period. See Put Option.")). ##### [260-10-50-1A](https://asc.understandingaccounting.org/asc/260/10/#260-10-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:09.996Z to 2026-09-09T23:19:09.996Z Record version: sha256:8d695f369f5a06c55b1ac97f1e00164f130cca8846918797c267c6e0d08250d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Per-share amounts not required to be presented by this Subtopic that an entity chooses to disclose shall be computed in accordance with this Subtopic and disclosed only in the notes to financial statements; it shall be noted whether the per-share amounts are pretax or net of tax. (See paragraph [260-10-45-5](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-5).) ##### [260-10-50-2](https://asc.understandingaccounting.org/asc/260/10/#260-10-50-2) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:09.996Z to 2026-09-09T23:19:09.996Z Record version: sha256:da2ddd15ab2c4ac540e5b468c3bde0341d8f49fc441a21c52f659bed774947a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For the latest period for which an income statement is presented, an entity shall provide a description of any transaction that occurs after the end of the most recent period but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) that would have changed materially the number of common shares or potential common shares outstanding at the end of the period if the transaction had occurred before the end of the period. Examples of those transactions include the issuance or acquisition of common shares; the issuance of warrants, [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."), or convertible securities; the resolution of a contingency pursuant to a [contingent stock agreement](https://asc.understandingaccounting.org/glossary/c/#contingent-stock-agreement "An agreement to issue common stock (usually in connection with a business combination) that is dependent on the satisfaction of certain conditions. See Contingently Issuable Shares."); and the conversion or exercise of potential common shares outstanding at the end of the period into common shares. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For the latest period for which an income statement is presented, an entity shall provide a description of any transaction that occurs after the end of the most recent period but before the financial statements are issued or are available to be issued (as discussed in Section 855-10-25) that would have changed materially the number of common shares or potential common shares outstanding at the end of the period if the transaction had occurred before the end of the period. Examples of those transactions include the issuance or acquisition of common shares; the issuance of warrants, [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."), or convertible securities; the resolution of a contingency pursuant to a [contingent stock agreement](https://asc.understandingaccounting.org/glossary/c/#contingent-stock-agreement "An agreement to issue common stock (usually in connection with a business combination) that is dependent on the satisfaction of certain conditions. See Contingently Issuable Shares."); and the conversion or exercise of potential common shares outstanding at the end of the period into common shares. The disclosures in this paragraph are required in interim and annual reporting periods. ### Master Limited Partnerships ##### [260-10-50-3](https://asc.understandingaccounting.org/asc/260/10/#260-10-50-3) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:09.996Z to 2026-09-09T23:19:09.996Z Record version: sha256:e3c939803e91a20080b6d7e03ec3f58d84376a09941116db13ae4e58a7db25e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the period in which a [dropdown](https://asc.understandingaccounting.org/glossary/d/#dropdown "A transfer of certain net assets from a sponsor or general partner to a master limited partnership in exchange for consideration.") transaction occurs that is accounted for under the Transactions between Entities under Common Control Subsections of Subtopic 805-50, a reporting entity shall disclose in narrative format how the rights to the earnings (losses) of the transferred net assets differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)In the period in which a [dropdown](https://asc.understandingaccounting.org/glossary/d/#dropdown "A transfer of certain net assets from a sponsor or general partner to a master limited partnership in exchange for consideration.") transaction occurs that is accounted for under the Transactions between Entities under Common Control Subsections of Subtopic 805-50, a reporting entity shall disclose in interim and annual reporting periods in narrative format how the rights to the earnings (losses) of the transferred net assets differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method.