IAS 33 – confusing text regarding diluted EPS

Hey Werty!

For calculating diluted EPS, the text says:
“When calculating the revised weighted average number of shares, the potential ordinary shares are deemed to have been converted into ordinary shares at the beginning of the period, or, if later, the date of issue”
I don’t understand the last bit. Suppose the year end is 31 Dec, and the date of issue is 31 March, what do we assume? That shares have been converted at 1 Jan (start of the period), or 31 March (meaning the number of shares would have to be multiplied with the fraction 9/12)?

Hope you are doing well.

SK