Page 28 - FINAL CFA I SLIDES JUNE 2019 DAY 7
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Session Unit 7:
24. Understanding Income Statements
Things to know about the weighted average shares outstanding calculation:
• The weighting system is DAYS but on the exam, the monthly approximation method will
probably be used.
• Shares issued enter into the computation from the date of issuance.
• Reacquired shares are excluded from the computation from the date of reacquisition.
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• A stock split or stock dividend adjustment is not applied to any shares issued or
repurchased after the split or dividend date.
