Page 37 - PowerPoint Presentation

EARNINGS PER SHARE

Options, Warrants And Other Share Purchase

Arrangements

• Options, warrants and other share purchase

arrangements are dilutive when they will result in

the issue of ordinary shares for less than fair value.

In order to calculate diluted earnings per share,

each arrangement is treated as consisting of the

following:

• a contract to issue ordinary shares at fair value:

• These shares are assumed to be neither dilutive nor anti-

dilutive and are ignored in the computation of diluted earnings
per share.

• a contract to issue the ordinary shares for no

consideration:

• These shares are dilutive and added to the number of ordinary

shares issued in the computation of dilutive earnings per share.
Such shares generate no proceeds and have no effect on the

profit attributable to ordinary shares.
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