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Accounting Mystery Tip

2/20/2017

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  • In relation to the treasury stock method, proceeds from the method may result/or include (1) amounts received under the "what if" the options were exercised and (2) the total compensation of the non-vested awards.
  • If you have a situation where there are dilutive convertible securities in some parts of the EPS, but antidilutive in others, it is practice to put it in the "income from continuing operations" line. 
  • With the treasury stock method, if you were to exercise options in November, the idea of applying the treasury stock method will require to weigh it by 10 months for the calculation.
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