Income available to common stockholders shall be computed by deducting both the dividends declared in the period
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Income available to common stockholders shall be computed by deducting both the dividends declared in the period on preferred stock
whether or not paid and the dividends accumulated for the period on cumulative preferred stock whether or not earned from income from continuing operations if that amount appears in the income statement and also from net income. If there is a loss from continuing operations or a net loss, the amount of the loss shall be increased by those preferred dividends. An adjustment to net income or loss for preferred stock dividends is required for all preferred stock dividends, regardless of the form of payment. Preferred dividends that are cumulative only if earned shall be deducted only to the extent that they are earned. Summarize what it means.
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