Complex Capital Structure
Response to the following problem:
The earnings per share data required of a company depend on the nature of its capital structure. A corporation may have a simple capital structure and compute only "basic earnings per share" or it may have a complex capital structure and have to compute basic earnings per share and "diluted earnings per share."
Required
Define the term complex capital structure and discuss the disclosures (both financial and explanatory) necessary for earnings per share when a corporation has a complex capital structure.