An entity shall present basic and diluted earnings per share, ____________
Select the words that correctly complete the above statement.
A. only if the basic and diluted amounts are different.
B. but basic earnings per share must be more prominent.
C. even if the amounts are negative (i.e., a loss per share).
D. only if the amounts are positive, i.e., a profit per share.
C. even if the amounts are negative (i.e., a loss per share).
Entities are required to present both basic and diluted earnings per share, regardless of whether the earnings per share amounts are positive or negative. The presentation of basic and diluted earnings per share is necessary to provide a comprehensive view of the entity's performance for all shareholders, including the potential impact of dilutive securities on the earnings per share calculation. Therefore, entities must present this information even when the earnings per share amounts are negative, indicating a loss per share rather than a profit.
