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Question 4 Which of the following is correct about calculating the diluted earnings per share? Select all that apply. When more than one basis of

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Question 4 Which of the following is correct about calculating the diluted earnings per share? Select all that apply. When more than one basis of conversion of dilutive potential ordinary shares exists, the calculation assumes the most advantageous conversion rate or exercise price from the standpoint of the holder of the potential ordinary shares. Under IAS 33 options and warrants have a dilutive effect only when the average market price of ordinary shares during the financial reporting period is less than the exercise price of the options or warrants. Potential ordinary shares that are cancelled or allowed to lapse during the period are included in the calculation of diluted earnings per share only for the portion of the period during which they are outstanding. Under IAS 33 the calculation of diluted earnings per share assumes conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on basic earnings per share

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