Page 22 - PowerPoint Presentation

Earnings Per Share

Shares Issued For No Consideration (Without A Change In Resources)

• Ordinary shares may be issued or the number of shares
outstanding may be reduced without a corresponding change

in resources. This means that even though the number of

shares outstanding changed during the year, no consideration

was received or paid. Therefore, the earnings capacity of the

company did not change. Examples include the following:

• a capitalisation or bonus issue (also referred to as a stock dividend)

• a share split

• a reverse share split (consolidation of shares)

• a bonus element in any other issue (for example a bonus element in a
rights issue to existing shareholders)

• The weighted average number of ordinary shares outstanding

during the period, and for all periods presented, should be
adjusted for events that have changed the number of ordinary

shares outstanding without a corresponding change in

resources. (This will exclude conversion of potential ordinary

shares.)

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