The performance of the company earnings per share is in basic indicators, the financial report users by means of earnings per share index to evaluate company 's earnings potential and future prospects for dividend. As an important financial indexes, earnings per share by financial analysis group, the attention of investors, it is very necessary for calculation and disclosure. In order to regulate the enterprise accounting recognition, measurement and reporting behavior, assure accountant information quality, in 2006 February, China's Ministry of Finance issued the" accounting standards for business enterprises" a total of 38 specific guidelines, which" Enterprise Accounting Standards No. thirty-fourth - earnings per share", on the listed companies earnings per share calculation made more detailed provisions, standards to make clear a requirement, enterprise besides calculating the basic earnings per share, also must calculate the diluted earnings per share, according to the guidelines, the listed company in the issue of new shares, repurchase of shares and issue convertible bonds, warrants, earnings per share calculation will produce major change.
It is the first time that China has released EPS accounting standards.