Page 38 - PowerPoint Presentation

EARNINGS PER SHARE

Options, Warrants And Other Share Purchase

Arrangements

• Employee share options with fixed and determinable terms

and non-vested ordinary shares are treated as options in the

calculation of diluted earnings per share, even though they

may be contingent on vesting.

• They are treated as outstanding on the grant date.
Performance-based share options are treated as

contingently issuable shares because their issue is contingent

upon satisfying specified conditions.

• If the options are dilutive, the following adjustments need to
be made when calculating diluted earnings per share:

• No adjustments are made to the earnings.

• The weighted average number of shares should be increased with
those shares deemed to be issued for no consideration. This is

calculated as the difference between the number of ordinary shares
to be issued in terms of the options and warrants and the number
of ordinary shares to be issued at fair value during the period in
order to raise the same proceeds as the options and warrants.

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