Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 9 When calculating diluted earnings per share, which of the following is correct? Potential ordinary shares are considered to be dilutive, as defined by
Question 9 When calculating diluted earnings per share, which of the following is correct? Potential ordinary shares are considered to be dilutive, as defined by IAS 33, when their conversion to ordinary shares would increase earnings per share or decrease loss per share from continuing operations. An entity must adjust the weighted average number of shares as calculated for basic earnings per share with the number of shares that would be issued on the conversion of all potential shares into shares. The calculation of diluted earnings per share assumes the conversion, exercise, or other issue of potential ordinary shares would have an antidilutive effect on basic earnings per share. Dilutive potential ordinary shares are deemed to have been converted into ordinary shares at the beginning of the period or, if later, the date of the issue of the potential ordinary shares
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started