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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