Finance and Accounting Flashcards

A collection of flashcards covering key concepts related to stock options, EPS calculations, and disclosures in finance and accounting.

Stock Options

Employees gain rights to purchase shares at a specified price.

Restricted Stock

Shares granted with conditions, such as continued employment.

Stock Appreciation Rights (SARS)

Rights to receive cash or shares based on stock price growth.

Share-Based Compensation Measurement

Fair value is determined at grant date and expensed over the vesting period.

Basic EPS

Net income available to common shareholders divided by the weighted-average number of shares outstanding.

Diluted EPS

Reflects the impact of potential shares from options, warrants, and convertible securities.

Convertible Bonds and Preferred Stock

Treated as if converted into common shares for EPS calculation.

Stock Options and Warrants

Assumed exercised, with proceeds hypothetically used to repurchase shares.

EPS Adjustments

Adjust for stock splits, stock dividends, and changes in share counts.

EPS Reporting

Separate reporting of continuing operations and extraordinary items.

EPS and Compensation Disclosures

Companies must disclose assumptions used in fair value estimates and EPS calculations.