Final answer:
Basic and diluted earnings per share must be disclosed on the face of the income statement for companies with publicly traded shares. Basic EPS is calculated using the net income and the weighted average number of common shares, while diluted EPS additionally considers the effect of potential shares.
Step-by-step explanation:
The question refers to the disclosure requirements on the income statement and specifically asks which earnings per share figures must be shown. According to the relevant accounting standards, such as the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), the following earnings per share figures are required:
- Basic earnings per share (EPS)
- Diluted earnings per share
These must be presented on the face of the income statement for companies with publicly traded shares. Basic EPS is calculated by dividing the net income available to common shareholders by the weighted average number of common shares outstanding during the period.
On the other hand, diluted EPS includes the impact of potential shares, like those from convertible securities, and generally provides a more conservative and inclusive measure of the company's earnings power. Weighted average earnings per share and projected earnings per share are not standard disclosures required on the face of the income statement.