Earnings on letters on the Internet, Alphabet Earnings: Profits Triple and Slump Worries Ease
Antidilution: an increase in earnings per share or a reduction in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions. Requirement to present EPS An entity whose securities are publicly traded or that is in process of public issuance must present, on the face of the statement of comprehensive income, basic and diluted EPS for: [IAS If an entity presents the components of profit or loss in a separate income statement, it presents EPS only in that separate statement.
IAS 33 includes guidance on appropriate recognition dates for shares issued in various circumstances. The numerator should be adjusted for the after-tax effects of dividends and interest charged in relation to dilutive potential ordinary shares and for any other changes in income that would earnings on letters on the Internet from the conversion of the potential ordinary shares.
In calculating diluted EPS, assume the exercise of outstanding dilutive options and warrants. The assumed proceeds from exercise should be regarded as having been used to repurchase ordinary shares at the average market price during the period.
The difference between the number of ordinary shares assumed issued on exercise and the number of ordinary shares assumed repurchased shall be treated as an issue of ordinary shares for no consideration.
Contingently issuable ordinary shares are treated as outstanding and included in the calculation of both basic and diluted EPS if the conditions have been met. If the conditions have not been met, the number of contingently issuable shares included in the diluted EPS calculation is based on the number of shares that would be issuable if the end of the period were the end of the contingency period. Restatement is not permitted if the conditions are not met when the contingency period expires.
Presume that the contract will be settled in ordinary shares, and include the resulting potential ordinary shares in diluted EPS if the effect is dilutive. If such changes occur after the balance sheet date but before the financial statements are authorised for issue, the EPS calculations for those and any prior period financial statements presented are based on the new number of shares.
Disclosure is required. Examples include issues and redemptions of ordinary shares issued for cash, warrants and options, conversions, and exercises [IAS Guidance for calculating and presenting such amounts is included in IAS Quick links.