Under current UK Generally Accepted Accounting Practices the company’s earnings per share are reported after including all exceptional and extraordinary credits and charges of a trading and non trading nature.
Hemmington Scott computes from the Annual Report & Accounts an adjusted, standardised value for earnings per share to provide a comparable basis for intercompany comparison. From an investment point of view this “normalised earnings per share (norm earn per share) includes three important characteristics:
- it reflects the underlying trading performance by excluding non-trading and exceptional results.
- it can be used as a measure of performance against expectations.
- it clarifies the historic record of operating performance.
No comments:
Post a Comment