There are times when a company has a convertible security that is considered to be antidilutive.

What is the proper accounting treatment of these securities with regard to EPS calculations? What effect do antidilutive securities have on EPS? Do you think that they should or should not be included in the calculation of EPS? Why or why not? Do the antidilutive securities have an effect on the stakeholder's perspective of the company's financial position?