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P2-D2.
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maximus07
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Hello Sir,
Sir I have not watched your lectures yet. I watch one month before paper to revise concepts and additional concepts.
I have a query that what will we do in diluted earnings per share if we have mid-year share options.According to my concept, we should simply add the bonus element to number of shares (in denominator in EPS). We will not show the mid-year effect as they are already bringing no amount or cash with it? Is this correct?
P2-D2
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Hi,
Yes, you do not need to adjust a bonus issue for the dates that they were issued as essentially no cash was received and the profit will not have been impacted. We just assume that they have always been in issue.
Thanks
maximus07
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