earnings

The net income or profit of a business. Because of the importance of earnings in calculating the earnings per share, there has been considerable debate as to its definition. Under Statement of Standard Accounting Practice (SSAP) 6, earnings excluded extraordinary items; this permitted some companies to use creative accounting to ensure that they reported a high earnings figure. The introduction of Financial Reporting Standard 3 removed SSAP 6 and amended SSAP 3, also concerned with earnings, so that any extraordinary items are now included in the calculation. This has led to a greater volatility in the earnings per share figure.

Accounting dictionary. 2014.

Synonyms:

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  • earnings — earn·ings n pl 1: something (as wages or dividends) earned as compensation for labor or the use of capital 2: the balance of revenue for a specified period that remains after deducting related costs and expenses incurred compare profit Merriam… …   Law dictionary

  • earnings — (n.) amount of money one makes (from labor or investment), 1732, from plural of verbal noun earning (O.E. earnung fact of deserving; what one deserves; see EARN (Cf. earn)) …   Etymology dictionary

  • earnings — [n] money for work performed balance, bottom line*, emolument, gain, gate, groceries*, income, in the black*, lucre, net, pay, payoff, piece of the pie*, proceeds, profit, receipts, remuneration, return, revenue, reward, salary, salt*, stipend,… …   New thesaurus

  • earnings — ► PLURAL NOUN ▪ money or income earned …   English terms dictionary

  • earnings — [ʉrn′iŋz] pl.n. 1. wages, salary, or other recompense earned by working 2. money made by an investment or an enterprise; profits …   English World dictionary

  • Earnings — Net income for the company during the period. The New York Times Financial Glossary * * * earnings earn‧ings [ˈɜːnɪŋz ǁ ˈɜːr ] noun [plural] 1. FINANCE the money that a person receives for the work they do in a particular period of time: • He… …   Financial and business terms

  • earnings — net income for the company during a period. Bloomberg Financial Dictionary Often a general phrase, meaning profits . It does however have a very specific definition in the context of earnings per share. Here, it is defined as profit after tax,… …   Financial and business terms

  • earnings — noun ADJECTIVE ▪ high, record, strong ▪ low, meagre/meager ▪ average ▪ annual, hourly …   Collocations dictionary

  • earnings — Income. That which is earned; i.e., money earned from performance of labor, services, sale of goods, etc. Revenue earned by an individual or business. Earnings generally include but are not limited to: salaries and wages, interest and dividends,… …   Black's law dictionary

  • Earnings — The amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. Earnings typically refer to after tax net income.Ultimately, a business s earnings are the main… …   Investment dictionary

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