You are the auditor performing the year end audit of Mulcahy Corporation. Mulcahy Corporation is a U.S. parent company with a subsidiary in Ireland. Mulcahy Corporation prepares its financial statements in accordance with (1) U.S. GAAP and (2) IFRS for reporting to its Irish bank lender. Mulcahy Corporation and its subsidiary company have a March 31st year end.

You have been assigned to audit Mulcahy's calculation for Basic and Dilutive EPS for the year ending March 31, 2020. Mulcahy's calculation for Basic EPS for the year ending March 31, 2020 is $3.75 and you have verified this to be correct.

Mulcahy has two potentially dilutive securities that they must include to calculate Diluted EPS. The first is convertible preferred stock and the second is convertible bonds. When calculating diluted EPS the impact of the convertible preferred stock is a reduction in EPS of $.03 and the impact of the convertible bonds is an increase of $.02 to EPS. (You have verified these individual calculations to be correct.) The controller believes that it is correct to net the impact of two convertible securities for an overall diluted EPS of $3.74. Based on these calculations the controller would like to present the following for EPS

Basic EPS: $3.75

Diluted EPS: $3.74

You manager has assigned you the task of researching U.S. GAAP and IFRS to see if Mulcahy has correctly calculated/determined the Diluted EPS for the year ending March 31, 2020.

1. GAAP Codification Reference:

Guidance: (cut and paste the guidance)

Based upon the guidance what is the correct amount of Diluted EPS under U.S. GAAP?

1. IFRS Reference: (make sure you list the standard/paragraph)

Based upon the guidance what is the correct amount of Diluted EPS under IFRS?