The profit before interest and taxation for the year ended 31 December 2016 amounted to 1,050,000 and arose exclusively from continuing operations. The rate of tax is 30%. The issued share capital of Entity A at 31 December 2015 was 2,000,000 ordinary shares of l each. On 1 January 2016, Entity A issued 1,500,000 of 7% convertible loan stock for cash at par. Each 100 nominal of the loan stock may be converted into 140 ordinary shares at any time after 1 January 2019. 05 Requirement Test whether the potential shares are dilutive