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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