I am confused with eg 3 on page 478 (CFAI text, reading 44, Equity section). In the eg the core EPS for 1st quarter= 1.28 and after adjusting for non - recuring items which total, 0.06+0.07+0.12= 0.25, the reported EPS = 1.28 -0.25=1.03. Then in part 3 of the question, it says to consider imapairment chagres of 0.12 as non recurring and then in solution it adds the impairment chargre of 0.12 to Reported EPS = 1.03 + 0.12 = 1.15. My question is why is it being added back since its non recurring and besides it already has been adjusted ie excluded frome core EPS of 1.28 ? Thanks
you add back any nonrecurring stuff b/c it doesn’t reflect “normal” EPS