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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