The significant differences between the current standard and expected standard are as follows:

• The notion of common stock equivalents is eliminated
• Basic EPS replaces the current Primary EPS, and Diluted EPS replaces the current Fully Diluted EPS.
• Potential shares will be redefined as in IAS 33.
• Basic EPS will be calculated by dividing the net profit or loss for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The calculation of diluted earnings per share will be consistent with the calculation of basic earnings per share while giving effect to all dilutive potential ordinary shares that were outstanding during the period.
• Potential ordinary shares will be treated as dilutive when, and only when, their conversion to ordinary shares would decrease net profit per share from continuing ordinary operations. That is, the effects of anti-dilutive potential ordinary shares must be ignored.
• Companies will be required to use net profit from continuing ordinary activities as 'the control number' in determining whether potential ordinary shares are dilutive or anti-dilutive.
• Contracts that require that the reporting entity repurchase its own stock, such as written put options and forward purchase contracts, will be reflected in computing diluted EPS if the effect is dilutive. If the exercise price is above the average market price for the period, the potential dilutive effect on EPS will be computed using the reverse treasury stock method of FASB 128.17-24.
• The revised standard will include provisions for restating EPS that are consistent with IAS 33.
• The EPS disclosure requirements will be expanded to be consistent with those in IAS 33 and FASB 128. Among other things, the revised standard will require a company to disclose the following:
  • a. The amounts used as the numerators in calculating basic and diluted earnings per share, and a reconciliation of those amounts to the net profit or loss for the period; and
  • b. The weighted average number of ordinary shares used as the denominator in calculating basic and diluted earnings per share, and a reconciliation of these denominators to each other.
  • 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.