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Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company.
FORMULA
Basic EPS= (Net income - Preferred dividends) / Weighted average number of common stock outstanding
Diluted earnings per share (diluted EPS) is a company's earnings per share calculated using fully diluted shares outstanding.
FORMULA
Diluted EPS = (Net income- Preferred dividends + Income adjustments due to dilutive financial instruments) / (Weighted average number of common shares outstanding+Newly issuable shares due to dilutive financial instruments)
Yes it is necessary to disclose EPS and Diluted EPS in Annual Report.
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