Page 40 - PowerPoint Presentation

EARNINGS PER SHARE

Financial instruments

• When an entity issues a contract which, at the

option of the entity (issuer), can be settled either

through the issue of ordinary shares or in cash, it

must be presumed that the contract will be settled

in ordinary shares, and the resulting potential

ordinary shares should be included in diluted

earnings per share, if the effect is dilutive.

• If the contract may be settled in ordinary shares or

in cash at the holder's option, the more dilutive of

cash settlement and share settlement should be

used in calculating diluted earnings per share.

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