Earnings per share is one of a number of indicators used in financial analysis to assess a company?s performance.  Broadly, it expresses a company?s reported profits in terms of the amount earned in a period attributable to one ordinary share. 

FRS 22 prescribes the basis for calculating and presenting earnings per share in the financial statements of entities whose shares are, or will be, publicly traded and other entities that choose to disclose earnings per share.  It has the effect of implementing IAS 33 (revised 2003) for such entities not preparing their financial statements in accordance with international accounting standards.  The standard focuses, with the help of illustrative examples, on the number of shares (the denominator) to be used in the calculation of basic and diluted earnings per share. 

FRS 22 is effective for accounting periods beginning on or after 1 January 2005 and supersedes FRS 14.