Page 197 - FR Integrated Workbook 2018-19

Earnings per share

Diluted earnings per share (DEPS)

2.1 Impact of diluting instruments

Diluting instruments

Convertible
Options
bonds

Impact on earnings Impact on shares – Impact on shares –
– notional interest assume maximum bonus element
saved (post-tax) conversion

2.2 Purpose of DEPS

The purpose of DEPS is to show the potential impact on EPS of future share issues
arising as a result of instruments in issue at the year-end. Instruments to be
considered are convertible debt (loan stock, bonds etc.) and share options.

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