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Hello Open Tuition
If there is potential ordinary shares (employee options in particular)
If a company expects to incur future expenses that will be
recognised in regard to these options up to the date of vesting.
How do you incorporate that when computing diluted earnings per share?
I already know that such share options have no effect on retained earnings. Some guidance on this
You do not need to take account of the future expenses in relation to the options in calculating the diluted EPS. You just need to look at the extra earnings from the tax savings.
Thank you very much.