You are the controller for CarneVal, a privately held corporation. All of the company’s outstanding shares are held by family members and a handful of trusted employees. The company has no outstanding securities that trade on any exchange, and no plans to go public. One of the company’s shareholders has questioned why the company’s financial statements do not include earnings per share data.
REQUIRED:
- Based on the facts presented, provide a brief statement of the issue to be researched.
- Provide the Codification citation to the authority that resolves the research issue—be specific.
- Conclusion—how the issue should be resolved based on your research.
