71Examples of transactions in paragraph 70(d) include:

71 Examples of transactions in paragraph 70(d) include: (a) an issue of shares for cash; (b) an issue of shares when the proceeds are used to repay debt or preference shares outstanding at the end of the reporting period; (c) the redemption of ordinary shares outstanding; (d) the conversion or exercise of potential ordinary shares outstanding at the end of the reporting period into ordinary shares; (e) an issue of options, warrants, or convertible instruments; and (f) the achievement of conditions that would result in the issue of contingently issuable shares. Earnings per share amounts are not adjusted for such transactions occurring after the reporting period because such transactions do not affect the amount of capital used to produce profit or loss for the period. 72 Financial instruments and other contracts generating potential ordinary shares may incorporate terms and conditions that affect the measurement of basic and diluted earnings per share. These terms and conditions may determine whether any potential ordinary shares are dilutive and, if so, the effect on the weighted average number of shares outstanding and any consequent adjustments to profit or loss attributable to ordinary equity holders. The disclosure of the terms and conditions of such financial instruments and other contracts is encouraged, if not otherwise required (see AASB 7 Financial Instruments: Disclosures). 73 If an entity discloses, in addition to basic and diluted earnings per share, amounts per share using a reported component of the statement of comprehensive income other than one required by this Standard, such amounts shall be calculated using the weighted average number of ordinary shares determined in accordance with this Standard. Basic and diluted amounts per share relating to such a component shall be disclosed with equal prominence and presented in the notes. An entity shall indicate the basis on which the numerator(s) is (are) determined, including whether amounts per share are before tax or after tax. If a component of the statement of comprehensive income is used that is not reported as a line item in the statement of comprehensive income, a reconciliation shall be provided between the component used and a line item that is reported in the statement of comprehensive income. 73A Paragraph 73 applies also to an entity that discloses, in addition to basic and diluted earnings per share, amounts per share using a reported item of profit or loss, other than one required by this Standard. Effective date 74 An entity shall apply this Standard for annual periods beginning on or after 1 January 2018. Earlier application is encouraged for periods beginning after 24 July 2014 but before 1 January 2018. If an entity applies the Standard for a period beginning before 1 January 2018, it shall disclose that fact. 74A– 74D \[Deleted by the AASB\] 74E AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014), issued in December 2014, amended paragraph 34 in the previous version of this Standard. An entity shall apply that amendment when it applies AASB 9. Withdrawal of other pronouncements 75– 76 \[Deleted by the AASB\] Commencement of the legislative instrument Aus76.1 \[Repealed\] Withdrawal of AASB pronouncements Aus76.2 This Standard repeals AASB 133 Earnings per Share issued in July 2004. Despite the repeal, after the time this Standard starts to apply under section 334 of the Corporations Act (either generally or in relation to an individual entity), the repealed Standard continues to apply in relation to any period ending before that time as if the repeal had not occurred. \[Note: When this Standard applies under section 334 of the Corporations Act (either generally or in relation to an individual entity), it supersedes the application of the repealed Standard.\] Appendix A Application guidance > Note: This appendix is an integral part of the Standard. Profit or loss attributable to the parent entity A1 For the purpose of calculating earnings per share based on the consolidated financial statements, profit or loss attributable to the parent entity refers to profit or loss of the consolidated entity after adjusting for non-controlling interests. Rights issues A2 The issue of ordinary shares at the time of exercise or conversion of potential ordinary shares does not usually give rise to a bonus element. This is because the potential ordinary shares are usually issued for fair value, resulting in a proportionate change in the resources available to the entity. In a rights issue, however, the exercise price is often less than the fair value of the shares. Therefore, as noted in paragraph 27(b), such a rights issue includes a bonus element. If a rights issue is offered to all existing shareholders, the number of ordinary shares to be used in calculating basic and diluted earnings per share for all periods before the rights issue is the number of ordinary shares outstanding before the issue, multiplied by the following factor: | Fair value per share immediately before the exercise of rights | | -------------------------------------------------------------- | | Theoretical ex-rights fair value per share | The theoretical ex-rights fair value per share is calculated by adding the aggregate fair value of the shares immediately before the exercise of the rights to the proceeds from the exercise of the rights, and dividing by the number of shares outstanding after the exercise of the rights. Where the rights are to be publicly traded separately from the shares before the exercise date, fair value is measured at the close of the last day on which the shares are traded together with the rights. Control number A3 To illustrate the application of the control number notion described in paragraphs 42 and 43, assume that an entity has profit from continuing operations attributable to the parent entity of CU4,800,[\[1\]](#_ftn1) a loss from discontinued operations attributable to the parent entity of (CU7,200), a loss attributable to the parent entity of (CU2,400), and 2,000 ordinary shares and 400 potential ordinary shares outstanding. The entity’s basic earnings per share is CU2.40 for continuing operations, (CU3.60) for discontinued operations and (CU1.20) for the loss. The 400 potential ordinary shares are included in the diluted earnings per share calculation because the resulting CU2.00 earnings per share for continuing operations is dilutive, assuming no profit or loss impact of those 400 potential ordinary shares. Because profit from continuing operations attributable to the parent entity is the control number, the entity also includes those 400 potential ordinary shares in the calculation of the other earnings per share amounts, even though the resulting earnings per share amounts are antidilutive to their comparable basic earnings per share amounts, ie the loss per share is less \[(CU3.00) per share for the loss from discontinued operations and (CU1.00) per share for the loss\]. Average market price of ordinary shares A4 For the purpose of calculating diluted earnings per share, the average market price of ordinary shares assumed to be issued is calculated on the basis of the average market price of the ordinary shares during the period. Theoretically, every market transaction for an entity’s ordinary shares could be included in the determination of the average market price. As a practical matter, however, a simple average of weekly or monthly prices is usually adequate. A5 Generally, closing market prices are adequate for calculating the average market price. When prices fluctuate widely, however, an average of the high and low prices usually produces a more representative price. The method used to calculate the average market price is used consistently unless it is no longer representative because of changed conditions. For example, an entity that uses closing market prices to calculate the average market price for several years of relatively stable prices might change to an average of high and low prices if prices start fluctuating greatly and the closing market prices no longer produce a representative average price. Options, warrants and their equivalents A6 Options or warrants to purchase convertible instruments are assumed to be exercised to purchase the convertible instrument whenever the average prices of both the convertible instrument and the ordinary shares obtainable upon conversion are above the exercise price of the options or warrants. However, exercise is not assumed unless conversion of similar outstanding convertible instruments, if any, is also assumed. A7 Options or warrants may permit or require the tendering of debt or other instruments of the entity (or its parent or a subsidiary) in payment of all or a portion of the exercise price. In the calculation of diluted earnings per share, those options or warrants have a dilutive effect if (a) the average market price of the related ordinary shares for the period exceeds the exercise price or (b) the selling price of the instrument to be tendered is below that at which the instrument may be tendered under the option or warrant agreement and the resulting discount establishes an effective exercise price below the market price of the ordinary shares obtainable upon exercise. In the calculation of diluted earnings per share, those options or warrants are assumed to be exercised and the debt or other instruments are assumed to be tendered. If tendering cash is more advantageous to the option or warrant holder and the contract permits tendering cash, tendering of cash is assumed. Interest (net of tax) on any debt assumed to be tendered is added back as an adjustment to the numerator. A8 Similar treatment is given to preference shares that have similar provisions or to other instruments that have conversion options that permit the investor to pay cash for a more favourable conversion rate. A9 The underlying terms of certain options or warrants may require the proceeds received from the exercise of those instruments to be applied to redeem debt or other instruments of the entity (or its parent or a subsidiary). In the calculation of diluted earnings per share, those options or warrants are assumed to be exercised and the proceeds applied to purchase the debt at its average market price rather than to purchase ordinary shares. However, the excess proceeds received from the assumed exercise over the amount used for the assumed purchase of debt are considered (ie assumed to be used to buy back ordinary shares) in the diluted earnings per share calculation. Interest (net of tax) on any debt assumed to be purchased is added back as an adjustment to the numerator. Written put options A10 To illustrate the application of paragraph 63, assume that an entity has outstanding 120 written put options on its ordinary shares with an exercise price of CU35. The average market price of its ordinary shares for the period is CU28. In calculating diluted earnings per share, the entity assumes that it issued 150 shares at CU28 per share at the beginning of the period to satisfy its put obligation of CU4,200. The difference between the 150 ordinary shares issued and the 120 ordinary shares received from satisfying the put option (30 incremental ordinary shares) is added to the denominator in calculating diluted earnings per share. Instruments of subsidiaries, joint ventures or associates A11 Potential ordinary shares of a subsidiary, joint venture or associate convertible into either ordinary shares of the subsidiary, joint venture or associate, or ordinary shares of the parent or investors with joint control of, or significant influence (the reporting entity) over, the investee are included in the calculation of diluted earnings per share as follows: (a) instruments issued by a subsidiary, joint venture or associate that enable their holders to obtain ordinary shares of the subsidiary, joint venture or associate are included in calculating the diluted earnings per share data of the subsidiary, joint venture or associate. Those earnings per share are then included in the reporting entity’s earnings per share calculations based on the reporting entity’s holding of the instruments of the subsidiary, joint venture or associate. (b) instruments of a subsidiary, joint venture or associate that are convertible into the reporting entity’s ordinary shares are considered among the potential ordinary shares of the reporting entity for the purpose of calculating diluted earnings per share. Likewise, options or warrants issued by a subsidiary, joint venture or associate to purchase ordinary shares of the reporting entity are considered among the potential ordinary shares of the reporting entity in the calculation of consolidated diluted earnings per share. A12 For the purpose of determining the earnings per share effect of instruments issued by a reporting entity that are convertible into ordinary shares of a subsidiary, joint venture or associate, the instruments are assumed to be converted and the numerator (profit or loss attributable to ordinary equity holders of the parent entity) adjusted as necessary in accordance with paragraph 33. In addition to those adjustments, the numerator is adjusted for any change in the profit or loss recorded by the reporting entity (such as dividend income or equity method income) that is attributable to the increase in the number of ordinary shares of the subsidiary, joint venture or associate outstanding as a result of the assumed conversion. The denominator of the diluted earnings per share calculation is not affected because the number of ordinary shares of the reporting entity outstanding would not change upon assumed conversion. Participating equity instruments and two-class ordinary shares A13 The equity of some entities includes: (a) instruments that participate in dividends with ordinary shares according to a predetermined formula (for example, two for one) with, at times, an upper limit on the extent of participation (for example, up to, but not beyond, a specified amount per share). (b) a class of ordinary shares with a different dividend rate from that of another class of ordinary shares but without prior or senior rights. A14 For the purpose of calculating diluted earnings per share, conversion is assumed for those instruments described in paragraph A13 that are convertible into ordinary shares if the effect is dilutive. For those instruments that are not convertible into a class of ordinary shares, profit or loss for the period is allocated to the different classes of shares and participating equity instruments in accordance with their dividend rights or other rights to participate in undistributed earnings. To calculate basic and diluted earnings per share: (a) profit or loss attributable to ordinary equity holders of the parent entity is adjusted (a profit reduced and a loss increased) by the amount of dividends declared in the period for each class of shares and by the contractual amount of dividends (or interest on participating bonds) that must be paid for the period (for example, unpaid cumulative dividends). (b) the remaining profit or loss is allocated to ordinary shares and participating equity instruments to the extent that each instrument shares in earnings as if all of the profit or loss for the period had been distributed. The total profit or loss allocated to each class of equity instrument is determined by adding together the amount allocated for dividends and the amount allocated for a participation feature. (c) the total amount of profit or loss allocated to each class of equity instrument is divided by the number of outstanding instruments to which the earnings are allocated to determine the earnings per share for the instrument. For the calculation of diluted earnings per share, all potential ordinary shares assumed to have been issued are included in outstanding ordinary shares. Partly paid shares A15 Where ordinary shares are issued but not fully paid, they are treated in the calculation of basic earnings per share as a fraction of an ordinary share to the extent that they were entitled to participate in dividends during the period relative to a fully paid ordinary share. A16 To the extent that partly paid shares are not entitled to participate in dividends during the period they are treated as the equivalent of warrants or options in the calculation of diluted earnings per share. The unpaid balance is assumed to represent proceeds used to purchase ordinary shares. The number of shares included in diluted earnings per share is the difference between the number of shares subscribed and the number of shares assumed to be purchased. Appendix C Australian simplified disclosures for Tier 2 entities > Note: This appendix is an integral part of the Standard. AusC1 Paragraphs 3–73A and Appendix A do not apply to entities preparing general purpose financial statements that apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities. If an entity applying AASB 1060 elects to disclose earnings per share, it shall apply this Standard in preparing and presenting the information. Illustrative examples <table cellspacing="0" cellpadding="0" style="width:469.7pt; border-collapse:collapse"><tbody><tr><td colspan="2" style="width:362.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="font-size:13pt"><span>Contents</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span style="font-weight:normal"></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 1</span><span> </span><span>Increasing rate preference shares</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 2</span><span> </span><span>Weighted average number of ordinary shares</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 3</span><span> </span><span>Bonus issue</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 4</span><span> </span><span>Rights issue</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 5</span><span> </span><span>Effects of share options on diluted earnings per share</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 5A</span><span> </span><span>Determining the exercise price of employee share options</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 6</span><span> </span><span>Convertible bonds</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 7</span><span> </span><span>Contingently issuable shares</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 8</span><span> </span><span>Convertible bonds settled in shares or cash at the issuer's option</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="margin-left:53.85pt; text-indent:-53.85pt"><span>Example 9</span><span> </span><span>Calculation of weighted average number of shares: determining the order in which to include dilutive instruments</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="margin-left:59.55pt; text-indent:-59.55pt"><span>Example 10</span><span> </span><span>Instruments of a subsidiary: calculation of basic and diluted earnings per share</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span>Example 11</span><span> </span><span>Participating equity instruments and two-class ordinary shares</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td><td style="width:350.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="margin-left:59.55pt; text-indent:-59.55pt"><span>Example 12</span><span> </span><span>Calculation and presentation of basic and diluted earnings per share (comprehensive example)</span></p></td><td style="width:74.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial" style="text-align:right"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableBoldArial"><span></span></p></td></tr></tbody></table> ``` Illustrative examples > Note: These examples accompany, but are not part of, AASB 133. Example 1 Increasing rate preference shares Reference: AASB 133, paragraphs 12 and 15 Entity D issued non-convertible, non-redeemable class A cumulative preference shares of CU100 par value on 1 January 20X1. The class A preference shares are entitled to a cumulative annual dividend of CU7 per share starting in 20X4. At the time of issue, the market rate dividend yield on the class A preference shares was 7 per cent a year. Thus, Entity D could have expected to receive proceeds of approximately CU100 per class A preference share if the dividend rate of CU7 per share had been in effect at the date of issue. In consideration of the dividend payment terms, however, the class A preference shares were issued at CU81.63 per share, ie at a discount of CU18.37 per share. The issue price can be calculated by taking the present value of CU100, discounted at 7 per cent over a three-year period. Because the shares are classified as equity, the original issue discount is amortised to retained earnings using the effective interest method and treated as a preference dividend for earnings per share purposes. To calculate basic earnings per share, the following imputed dividend per class A preference share is deducted to determine the profit or loss attributable to ordinary equity holders of the parent entity: <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td style="width:149.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span style="font-weight:bold">Year</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Carrying amount of class A preference shares 1 January</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Imputed</span><span style="font-size:6pt; font-weight:bold; font-style:italic; vertical-align:super">(a)</span><span style="font-weight:bold; font-style:italic"> dividend</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Carrying</span><span style="font-size:6pt; font-weight:bold; font-style:italic; vertical-align:super">(b)</span><span style="font-weight:bold; font-style:italic"> amount of class A preference shares 31 December</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Dividend paid</span></p></td></tr><tr><td style="width:149.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold">CU</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold">CU</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold">CU</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold">CU</span></p></td></tr></thead><tbody><tr><td style="width:149.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>20X1</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>81.63</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>5.71</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>87.34</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>–</span></p></td></tr><tr><td style="width:149.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>20X2</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>87.34</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>6.12</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>93.46</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>–</span></p></td></tr><tr><td style="width:149.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>20X3</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>93.46</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>6.54</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100.00</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>–</span></p></td></tr><tr><td style="width:149.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Thereafter:</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100.00</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>7.00</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>107.00</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>(7.00)</span></p></td></tr><tr><td colspan="5" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR"><span>(</span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">a)</span><span style="width:26.62pt; display:inline-block"> </span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">at 7%</span><br><span>(</span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">b)</span><span style="width:26.17pt; display:inline-block"> </span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">This is before dividend payment.</span></p></td></tr></tbody></table> ``` Example 2 Weighted average number of ordinary shares Reference: AASB 133, paragraphs 19–21 <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td style="width:108.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span></span></p></td><td style="width:102.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span></span></p></td><td style="width:34.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Shares issued</span></p></td><td colspan="2" style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Treasury</span><span style="font-size:6pt; font-weight:bold; font-style:italic; vertical-align:super">(a)</span><span style="font-weight:bold; font-style:italic"> shares</span></p></td><td style="width:7.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Shares outstanding</span></p></td></tr></thead><tbody><tr><td style="width:108.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>1 January 20X1</span></p></td><td style="width:102.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Balance at beginning of year</span></p></td><td style="width:34.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,000</span></p></td><td style="width:25.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:34.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>300</span></p></td><td style="width:7.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1,700</span></p></td></tr><tr><td style="width:108.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>31 May 20X1</span></p></td><td style="width:102.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Issue of new shares for cash</span></p></td><td style="width:34.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>800</span></p></td><td style="width:25.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:34.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>–</span></p></td><td style="width:7.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,500</span></p></td></tr><tr><td style="width:108.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>1 December 20X1</span></p></td><td style="width:102.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Purchase of treasury shares for cash</span></p></td><td style="width:34.7pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>–</span></p></td><td style="width:25.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:34.7pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>250</span></p></td><td style="width:7.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,250</span></p></td></tr><tr><td style="width:108.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>31 December 20X1</span></p></td><td style="width:102.95pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Balance at year-end</span></p></td><td style="width:34.7pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,800</span></p></td><td style="width:25.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:34.7pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>550</span></p></td><td style="width:7.4pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,250</span></p></td></tr><tr><td colspan="6" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="7" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Calculation of weighted average:</span></p></td></tr><tr><td colspan="7" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>(1,700 × </span><span style="font-size:6pt; vertical-align:super">5</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) + (2,500 × </span><span style="font-size:6pt; vertical-align:super">6</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) + (2,250 × </span><span style="font-size:6pt; vertical-align:super">1</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) = 2,146 shares </span><span style="font-style:italic">or</span></p></td></tr><tr><td colspan="7" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>(1,700 × </span><span style="font-size:6pt; vertical-align:super">12</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) + (800 × </span><span style="font-size:6pt; vertical-align:super">7</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) – (250 × </span><span style="font-size:6pt; vertical-align:super">1</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) = 2,146 shares</span></p></td></tr><tr><td colspan="7" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR" style="font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(a)</span><span style="width:27.12pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">Treasury shares are equity instruments reacquired and held by the issuing entity itself or by its subsidiaries.</span></p></td></tr></tbody></table> ``` Example 3 Bonus issue Reference: AASB 133, paragraphs 26, 27(a) and 28 <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td colspan="3" style="width:381.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity 20X0</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU180</span></p></td></tr><tr><td colspan="3" style="width:381.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity 20X1</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU600</span></p></td></tr><tr><td colspan="3" style="width:381.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Ordinary shares outstanding until 30 September 20X1</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>200</span></p></td></tr><tr><td style="width:299.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Bonus issue 1 October 20X1</span></p></td><td colspan="3" style="width:139.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2 ordinary shares for each ordinary share outstanding at 30 September 20X1</span></p></td></tr><tr><td style="width:299.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td colspan="3" style="width:139.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>200 × 2 = 400</span></p></td></tr><tr><td rowspan="2" style="width:299.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span>Basic earnings per share 20X1</span></p></td><td style="width:57.45pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU600</span></p></td><td colspan="2" rowspan="2" style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial" style="text-align:right"><span>= CU1.00</span></p></td></tr><tr><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>(200 + 400)</span></p></td></tr><tr><td rowspan="2" style="width:299.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span>Basic earnings per share 20X0</span></p></td><td style="width:57.45pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU180</span></p></td><td colspan="2" rowspan="2" style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial" style="text-align:right"><span>= CU0.30</span></p></td></tr><tr><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span>(200 + 400)</span></p></td></tr><tr><td colspan="4" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="4" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableTNR"><span>Because the bonus issue was without consideration, it is treated as if it had occurred before the beginning of 20X0, the earliest period presented.</span></p></td></tr><tr style="height:0pt"><td style="width:310.25pt"></td><td style="width:68.25pt"></td><td style="width:13.65pt"></td><td style="width:68.25pt"></td></tr></tbody></table> ``` Example 4 Rights issue Reference: AASB 133, paragraphs 26, 27(b) and A2 <table cellspacing="0" cellpadding="0" style="width:463.4pt; border-collapse:collapse"><tbody><tr><td colspan="4" style="width:268.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:43.8pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20X0</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20X1</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20X2</span></p></td></tr><tr><td colspan="4" style="width:268.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity</span></p></td><td style="width:43.8pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,100</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,500</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,800</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Shares outstanding before rights issue</span></p></td><td colspan="2" style="width:131.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>500 shares</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Rights issue</span></p></td><td colspan="9" style="width:315.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>One new share for each five outstanding shares</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td colspan="9" style="width:315.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>(100 new shares total)</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td colspan="9" style="width:315.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Exercise price: CU5.00</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td colspan="9" style="width:315.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Date of rights issue: 1 January 20X1</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td colspan="9" style="width:315.25pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Last date to exercise rights: 1 March 20X1</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Market price of one ordinary share immediately before exercise on 1 March 20X1:</span></p></td><td colspan="5" style="width:250.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>CU11.00</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Reporting date</span></p></td><td colspan="5" style="width:250.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>31 December</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="7" style="width:387.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="11" style="width:452.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-weight:bold">Calculation of theoretical ex-rights value per share</span></p></td></tr><tr><td style="vertical-align:top"></td><td colspan="9" style="width:393.15pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="margin-bottom:6pt; text-align:center; font-size:8pt"><span>Fair value of all outstanding shares before the exercise of rights + total amount received from exercise of rights</span></p></td><td style="vertical-align:top"></td></tr><tr><td style="vertical-align:top"></td><td colspan="9" style="width:393.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center; font-size:8pt"><span>Number of shares outstanding before exercise + number of shares issued in the exercise</span></p></td><td style="vertical-align:top"></td></tr><tr><td colspan="11" style="width:452.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td colspan="5" style="width:250.55pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>(CU11.00 × 500 shares) + (CU5.00 × 100 shares)</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td colspan="5" style="width:250.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>500 shares + 100 shares</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="11" style="width:452.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="11" style="width:452.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Theoretical ex-rights value per share = CU10.00</span></p></td></tr><tr><td colspan="7" style="width:387.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="7" style="width:387.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-weight:bold">Calculation of adjustment factor</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="4" style="width:268.6pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>Fair value per share before exercise of rights</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td colspan="2" style="width:51.85pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial" style="text-align:center"><span>CU11.00</span></p></td><td colspan="3" rowspan="2" style="width:44.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial" style="text-align:right"><span>= 1.10</span></p></td></tr><tr><td colspan="4" style="width:268.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span>Theoretical ex-rights value per share</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td colspan="2" style="width:51.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span>CU10.00</span></p></td></tr><tr><td colspan="7" style="width:387.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="7" style="width:387.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-weight:bold">Calculation of basic earnings per share</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="4" style="width:268.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:43.8pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20X0</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20X1</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td colspan="2" style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20X2</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>20X0 basic EPS as originally reported:</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:119.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>CU1,100 ÷ 500 shares</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU2.20</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" rowspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>20X0 basic EPS restated for rights issue:</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td style="width:119.45pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU1,100</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td style="width:119.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>(500 shares × 1.1)</span></p></td><td style="width:43.8pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU2.00</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" rowspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>20X1 basic EPS including effects of rights issue:</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td colspan="2" style="width:174.05pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU1,500</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span></span></p></td><td colspan="2" style="width:174.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>(500 × 1.1 × </span><span style="font-size:6pt; vertical-align:super">2</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>) + (600 × </span><span style="font-size:6pt; vertical-align:super">10</span><span>/</span><span style="font-size:6pt; vertical-align:sub">12</span><span>)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU2.54</span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td colspan="2" style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>20X2 basic EPS:</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:119.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>CU1,800 ÷ 600 shares</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU3.00</span></p></td></tr><tr><td colspan="2" style="width:126.55pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:119.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td colspan="2" style="width:42.1pt; border-top:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td></tr><tr style="height:0pt"><td style="width:26.7pt"></td><td style="width:110.65pt"></td><td style="width:11.8pt"></td><td style="width:130.25pt"></td><td style="width:54.6pt"></td><td style="width:11.8pt"></td><td style="width:52.9pt"></td><td style="width:9.75pt"></td><td style="width:2.05pt"></td><td style="width:20.15pt"></td><td style="width:32.75pt"></td></tr></tbody></table> ``` Example 5 Effects of share options on diluted earnings per share Reference: AASB 133, paragraphs 45–47 <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity for year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,200,000</span></p></td><td colspan="2" style="width:153pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average number of ordinary shares outstanding during year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>500,000 shares</span></p></td><td colspan="2" style="width:153pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Average market price of one ordinary share during year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU20.00</span></p></td><td colspan="2" style="width:153pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average number of shares under option during year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100,000 shares</span></p></td><td colspan="2" style="width:153pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Exercise price for shares under option during year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU15.00</span></p></td><td colspan="2" style="width:153pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="4" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="margin-top:18pt"><span style="font-weight:bold">Calculation of earnings per share</span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-style:italic">Earnings</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-style:italic">Shares</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-style:italic">Per share</span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity for year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,200,000</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average shares outstanding during year 20X1</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>500,000</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-style:italic">Basic earnings per share</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU2.40</span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average number of shares under option</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100,000</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average number of shares that would have been issued at average market price: (100,000 × CU15.00) ÷ CU20.00</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-size:6pt; vertical-align:super">(a)</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>(75,000)</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:185.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-style:italic">Diluted earnings per share</span></p></td><td style="width:89.3pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,200,000</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>525,000</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU2.29</span></p></td></tr><tr><td colspan="4" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR" style="margin-left:28.35pt; text-indent:-28.35pt; font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(a)</span><span style="width:19.47pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">Earnings have not increased because the total number of shares has increased only by the number of shares (25,000) deemed to have been issued for no consideration (see paragraph 46(b) of the Standard).</span></p></td></tr></tbody></table> ``` Example 5A Determining the exercise price of employee share options <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average number of unvested share options per employee</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1,000</span></p></td></tr><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Weighted average amount per employee to be recognised over the remainder of the vesting period for employee services to be rendered as consideration for the share options, determined in accordance with</span><span> AASB</span><span> </span><span>2</span><span> </span><span style="font-style:italic">Share-based Payment</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,200</span></p></td></tr><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Cash exercise price of unvested share options</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU15</span></p></td></tr><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="2" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-weight:bold">Calculation of adjusted exercise price</span></p></td></tr><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Fair value of services yet to be rendered per employee:</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,200</span></p></td></tr><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Fair value of services yet to be rendered per option: (CU1,200 ÷ 1,000)</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1.20</span></p></td></tr><tr><td style="width:358.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Total exercise price of share options: (CU15.00 + CU1.20)</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU16.20</span></p></td></tr></tbody></table> ``` Example 6 Convertible bonds[\[2\]](#_ftn2) Reference: AASB 133, paragraphs 33, 34, 36 and 49 <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,004</span></p></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Ordinary shares outstanding</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1,000</span></p></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Basic earnings per share</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1.00</span></p></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Convertible bonds</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100</span></p></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Each block of 10 bonds is convertible into three ordinary shares</span></p></td><td style="vertical-align:top"></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Interest expense for the current year relating to the liability component of the convertible bonds</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU10</span></p></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Current and deferred tax relating to that interest expense</span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU4</span></p></td></tr><tr><td colspan="3" style="width:367.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="vertical-align:top"></td></tr><tr><td colspan="4" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span style="font-style:italic">Note: the interest expense includes amortisation of the discount arising on initial recognition of the liability component (see</span><span> AASB</span><span> </span><span>132</span><span> Financial Instruments: Presentation</span><span style="font-style:italic">).</span></p></td></tr><tr><td colspan="4" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td rowspan="2" style="width:294.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Adjusted profit attributable to ordinary equity holders</span><br><span>of the parent entity</span></p></td><td colspan="3" style="width:143.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,004 + CU10 – CU4</span></p></td></tr><tr><td colspan="3" style="width:143.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>= CU1,010</span></p></td></tr><tr><td style="width:294.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Number of ordinary shares resulting from conversion of bonds</span></p></td><td style="width:48.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:2.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>30</span></p></td></tr><tr><td style="width:294.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Number of ordinary shares used to calculate diluted earnings per share</span></p></td><td colspan="3" style="width:143.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1,000 + 30 = 1,030</span></p></td></tr><tr><td rowspan="2" style="width:294.9pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Diluted earnings per share</span></p></td><td style="width:48.35pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU1,010</span></p></td><td style="width:2.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td rowspan="2" style="width:71.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span>= CU0.98</span></p></td></tr><tr><td style="width:48.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="margin-top:3pt; text-align:center"><span>1,030</span></p></td><td style="width:2.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr style="height:0pt"><td style="width:305.7pt"></td><td style="width:59.15pt"></td><td style="width:13.65pt"></td><td style="width:81.9pt"></td></tr></tbody></table> ``` Example 7 Contingently issuable shares Reference: AASB 133, paragraphs 19, 24, 36, 37, 41–43 and 52 <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Ordinary shares outstanding during 20X1</span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>1,000,000 (there were no options, warrants or convertible instruments outstanding during the period)</span></p></td></tr><tr><td colspan="2" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>An agreement related to a recent business combination provides for the issue of additional ordinary shares based on the following conditions:</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>5,000 additional ordinary shares for each new retail site opened during 20X1</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>1,000 additional ordinary shares for each CU1,000 of consolidated profit in excess of CU2,000,000 for the year ended 31 December 20X1</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Retail sites opened during the year:</span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>one on 1 May 20X1</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>one on 1 September 20X1</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Consolidated year-to-date profit attributable to ordinary equity holders of the parent entity:</span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>CU1,100,000 as of 31 March 20X1</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>CU2,300,000 as of 30 June 20X1</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>CU1,900,000 as of 30 September 20X1 (including a CU450,000 loss from a discontinued operation)</span></p></td></tr><tr><td style="width:222.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:216.7pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>CU2,900,000 as of 31 December 20X1</span></p></td></tr></tbody></table> ``` <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="10" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span style="font-weight:bold">Basic earnings per share</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">First quarter</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Second quarter</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Third quarter</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Fourth quarter</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Full year</span></p></td></tr></thead><tbody><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="font-size:7.5pt"><span>Numerator (CU)</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,100,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,200,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>(400,000)</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>2,900,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="font-size:7.5pt"><span>Denominator:</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="font-size:7.5pt"><span>Ordinary shares outstanding</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="font-size:7.5pt"><span>Retail site contingency</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">3,333</span><span style="font-size:6pt; vertical-align:super">(a)</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">6,667</span><span style="font-size:6pt; vertical-align:super">(b)</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>10,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">5,000</span><span style="font-size:6pt; vertical-align:super">(c)</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span style="font-size:7.5pt">Earnings contingency</span><span style="font-size:6pt; vertical-align:super">(d)</span></p></td><td style="width:43.8pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="font-size:7.5pt"><span>Total shares</span></p></td><td style="width:43.8pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,003,333</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,006,667</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,010,000</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,005,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="font-size:7.5pt"><span>Basic earnings per share (CU)</span></p></td><td style="width:43.8pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1.10</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1.20</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>(0.40)</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>0.99</span></p></td><td style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>2.89</span></p></td></tr><tr><td colspan="10" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="10" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR" style="font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(a)</span><span style="width:27.12pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">5,000 shares × </span><span class="FootnoteReference" style="font-size:5.33pt">2</span><span class="FootnoteReference" style="vertical-align:baseline">/</span><span class="FootnoteReference" style="font-size:5.33pt; vertical-align:sub">3</span></p><p class="IASBTableTNR" style="font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(b)</span><span style="width:26.67pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">5,000 shares + (5,000 shares × </span><span class="FootnoteReference" style="font-size:5.33pt">1</span><span class="FootnoteReference" style="vertical-align:baseline">/</span><span class="FootnoteReference" style="font-size:5.33pt; vertical-align:sub">3</span><span class="FootnoteReference" style="vertical-align:baseline">)</span></p><p class="IASBTableTNR" style="font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(c)</span><span style="width:27.12pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">(5,000 shares × </span><span class="FootnoteReference" style="font-size:5.33pt">8</span><span class="FootnoteReference" style="vertical-align:baseline">/</span><span class="FootnoteReference" style="font-size:5.33pt; vertical-align:sub">12</span><span class="FootnoteReference" style="vertical-align:baseline">) + (5,000 shares × </span><span class="FootnoteReference" style="font-size:5.33pt">4</span><span class="FootnoteReference" style="vertical-align:baseline">/</span><span class="FootnoteReference" style="font-size:5.33pt; vertical-align:sub">12</span><span class="FootnoteReference" style="vertical-align:baseline">)</span></p><p class="IASBTableTNR" style="margin-left:35.45pt; text-indent:-35.45pt; font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(d)</span><span style="width:26.12pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">The earnings contingency has no effect on basic earnings per share because it is not certain that the condition is satisfied until the end of the contingency period. The effect is negligible for the fourth-quarter and full-year calculations because it is not certain that the condition is met until the last day of the period.</span></p></td></tr></tbody></table> ``` <table cellspacing="0" cellpadding="0" style="width:464.4pt; border-collapse:collapse"><thead><tr><td colspan="10" style="width:453.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span style="font-weight:bold">Diluted earnings per share</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">First quarter</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Second quarter</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Third quarter</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Fourth quarter</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right; line-height:115%; font-size:7.5pt"><span style="font-weight:bold; font-style:italic">Full year</span></p></td></tr></thead><tbody><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Numerator (CU)</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,100,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,200,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>(400,000)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>2,900,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Denominator:</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Ordinary shares outstanding</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Retail site contingency</span></p></td><td style="width:43.8pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>–</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>5,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>10,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>10,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>10,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Earnings contingency</span></p></td><td style="width:43.8pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">–</span><span style="font-size:6pt; vertical-align:super">(a)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">300,000</span><span style="font-size:6pt; vertical-align:super">(b)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">–</span><span style="font-size:6pt; vertical-align:super">(c)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">900,000</span><span style="font-size:6pt; vertical-align:super">(d)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">900,000</span><span style="font-size:6pt; vertical-align:super">(d)</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Total shares</span></p></td><td style="width:43.8pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,000,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,305,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,010,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,910,000</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1,910,000</span></p></td></tr><tr><td style="width:140.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="font-size:7.5pt"><span>Diluted earnings per share (CU)</span></p></td><td style="width:43.8pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1.10</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>0.92</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span style="font-size:7.5pt">(0.40)</span><span style="font-size:6pt; vertical-align:super">(e)</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>0.52</span></p></td><td style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:42.1pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right; font-size:7.5pt"><span>1.52</span></p></td></tr><tr><td colspan="10" style="width:453.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td colspan="10" style="width:453.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR" style="margin-left:21.3pt; text-indent:-21.3pt; font-size:8pt"><span><span>(a)</span></span><span style="font:7pt 'Times New Roman'"> </span><span class="FootnoteReference" style="vertical-align:baseline">Company A does not have year-to-date profit exceeding CU2,000,000 at 31 March 20X1. The Standard does not permit projecting future earnings levels and including the related contingent shares.</span></p><p class="IASBTableTNR" style="margin-left:21.3pt; text-indent:-21.3pt; font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(b)</span><span style="width:11.97pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">[(CU2,300,000 – CU2,000,000) ÷ 1,000] × 1,000 shares = 300,000 shares.</span></p><p class="IASBTableTNR" style="margin-left:21.3pt; text-indent:-21.3pt; font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(c)</span><span style="width:12.42pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">Year-to-date profit is less than CU2,000,000.</span></p><p class="IASBTableTNR" style="margin-left:21.3pt; text-indent:-21.3pt; font-size:8pt"><span>(</span><span class="FootnoteReference" style="vertical-align:baseline">d)</span><span style="width:11.97pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">[(CU2,900,000 – CU2,000,000) ÷ 1,000] × 1,000 shares = 900,000 shares.</span></p><p class="IASBTableTNR" style="margin-left:21.3pt; text-indent:-21.3pt; font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(e)</span><span style="width:12.42pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">Because the loss during the third quarter is attributable to a loss from a discontinued operation, the antidilution rules do not apply. The control number (ie profit or loss from, continuing operations attributable to the equity holders of the parent entity) is positive. Accordingly, the effect of potential ordinary shares is included in the calculation of diluted earnings per share.</span></p></td></tr></tbody></table> ``` Example 8 Convertible bonds settled in shares or cash at the issuer’s option Reference: AASB 133, paragraphs 31–33, 36, 58 and 59 An entity issues 2,000 convertible bonds at the beginning of Year 1. The bonds have a three-year term, and are issued at par with a face value of CU1,000 per bond, giving total proceeds of CU2,000,000. Interest is payable annually in arrears at a nominal annual interest rate of 6 per cent. Each bond is convertible at any time up to maturity into 250 ordinary shares. The entity has an option to settle the principal amount of the convertible bonds in ordinary shares or in cash. When the bonds are issued, the prevailing market interest rate for similar debt without a conversion option is 9 per cent. At the issue date, the market price of one ordinary share is CU3. Income tax is ignored. <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Profit attributable to ordinary equity holders of the parent entity Year 1</span></p></td><td style="width:61.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,000,000</span></p></td></tr><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Ordinary shares outstanding</span></p></td><td style="width:61.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1,200,000</span></p></td></tr><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Convertible bonds outstanding</span></p></td><td style="width:61.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,000</span></p></td></tr><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Allocation of proceeds of the bond issue:</span></p></td><td style="width:61.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td></tr><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Liability component</span></p></td><td style="width:61.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU1,848,122</span><span style="font-size:6pt; vertical-align:super">(a)</span></p></td></tr><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Equity component</span></p></td><td style="width:61.45pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU151,878</span></p></td></tr><tr><td style="width:377.35pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span></span></p></td><td style="width:61.45pt; border-bottom:1.5pt double #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU2,000,000</span></p></td></tr><tr><td colspan="2" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR" style="margin-left:28.35pt; text-indent:-28.35pt; font-size:8pt"><span class="FootnoteReference" style="vertical-align:baseline">(a)</span><span style="width:19.47pt; text-indent:0pt; display:inline-block"> </span><span class="FootnoteReference" style="vertical-align:baseline">This represents the present value of the principal and interest discounted at 9% – CU2,000,000 payable at the end of three years; CU120,000 payable annually in arrears for three years.</span></p></td></tr></tbody></table> ``` The liability and equity components would be determined in accordance with AASB 132 Financial Instruments: Presentation. These amounts are recognised as the initial carrying amounts of the liability and equity components. The amount assigned to the issuer conversion option equity element is an addition to equity and is not adjusted. <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td colspan="3" style="width:450.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR"><span style="font-weight:bold">Basic earnings per share Year 1:</span></p></td></tr><tr><td style="width:76.5pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU1,000,000</span></p></td><td rowspan="2" style="width:1pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td rowspan="2" style="width:351.5pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span>= CU0.83 per ordinary share</span></p></td></tr><tr><td style="width:76.5pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span>1,200,000</span></p></td></tr></tbody></table> ``` Diluted earnings per share Year 1: It is presumed that the issuer will settle the contract by the issue of ordinary shares. The dilutive effect is therefore calculated in accordance with paragraph 59 of the Standard. <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><tbody><tr><td style="width:153.85pt; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:center"><span>CU1,000,000 + CU166,331</span><span style="font-size:6pt; vertical-align:super">(a)</span></p></td><td rowspan="2" style="padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span></span></p></td><td rowspan="2" style="width:274.15pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:middle"><p class="IASBTableArial"><span>= CU0.69 per ordinary share</span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span>1,200,000 + 500,000</span><span style="font-size:6pt; vertical-align:super">(b)</span></p></td></tr><tr><td colspan="3" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="text-align:center"><span></span></p></td></tr><tr><td colspan="3" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableTNR"><span style="font-size:8pt">(</span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">a)</span><span style="width:27.12pt; display:inline-block"> </span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">Profit is adjusted for the accretion of CU166,331 (CU1,848,122 × 9%) of the liability because of the passage of time.</span><br><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">(b)</span><span style="width:26.67pt; display:inline-block"> </span><span class="FootnoteReference" style="font-size:8pt; vertical-align:baseline">500,000 ordinary shares = 250 ordinary shares × 2,000 convertible bonds</span></p></td></tr></tbody></table> ``` Example 9 Calculation of weighted average number of shares: determining the order in which to include dilutive instruments[\[3\]](#_ftn3) Primary reference: AASB 133, paragraph 44 Secondary reference: AASB 133, paragraphs 10, 12, 19, 31–33, 36, 41–47, 49 and 50 | Earnings | CU | | ---------------------------------------------------------------------------------------------- | ----------- | | Profit from continuing operations attributable to the parent entity | 16,400,000 | | Less dividends on preference shares | (6,400,000) | | Profit from continuing operations attributable to ordinary equity holders of the parent entity | 10,000,000 | | Loss from discontinued operations attributable to the parent entity | (4,000,000) | | Profit attributable to ordinary equity holders of the parent entity | 6,000,000 | | Ordinary shares outstanding | 2,000,000 | | Average market price of one ordinary share during year | CU75.00 | <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="2" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span style="font-weight:bold">Potential ordinary shares</span></p></td></tr></thead><tbody><tr><td style="width:144.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Options</span></p></td><td style="width:294.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>100,000 with exercise price of CU60</span></p></td></tr><tr><td style="width:144.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Convertible preference shares</span></p></td><td style="width:294.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>800,000 shares with a par value of CU100 entitled to a cumulative dividend of CU8 per share. Each preference share is convertible to two ordinary shares.</span></p></td></tr><tr><td style="width:144.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>5% convertible bonds</span></p></td><td style="width:294.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Nominal amount CU100,000,000. Each CU1,000 bond is convertible to 20 ordinary shares. There is no amortisation of premium or discount affecting the determination of interest expense.</span></p></td></tr><tr><td style="width:144.75pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Tax rate</span></p></td><td style="width:294.05pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>40%</span></p></td></tr></tbody></table> ``` <table cellspacing="0" cellpadding="0" style="border-collapse:collapse"><thead><tr><td colspan="5" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span style="font-weight:bold">Increase in earnings attributable to ordinary equity holders on conversion of potential ordinary shares</span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Increase in earnings</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Increase in number of ordinary shares</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; font-style:italic">Earnings per incremental share</span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; text-decoration:underline">CU</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableHeaderArial" style="margin-bottom:6pt; text-align:right"><span style="font-weight:bold; text-decoration:underline">CU</span></p></td></tr></thead><tbody><tr><td colspan="5" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span style="font-weight:bold">Options</span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Increase in earnings</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>Nil</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Incremental shares issued for no consideration</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100,000 × (CU75 – CU60) ÷ CU75</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>20,000</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>Nil</span></p></td></tr><tr><td colspan="5" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span style="font-weight:bold">Convertible preference shares</span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Increase in profit</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU800,000 × 100 × 0.08</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>6,400,000</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Incremental shares</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2 × 800,000</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1,600,000</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>4.00</span></p></td></tr><tr><td colspan="5" style="width:449.6pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial" style="page-break-after:avoid"><span style="font-weight:bold">5% convertible bonds</span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="IASBTableArial"><span>Increase in profit</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>CU100,000,000 × 0.05 ×</span><span> </span><span>(1 – 0.40)</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>3,000,000</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td></tr><tr><td style="width:153.85pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial"><span>Incremental shares</span></p></td><td style="width:80.2pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>100,000 × 20</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span></span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>2,000,000</span></p></td><td style="width:57.45pt; padding-right:5.4pt; padding-left:5.4pt; vertical-align:bottom"><p class="IASBTableArial" style="text-align:right"><span>1.50</span></p></td></tr></tbody></table> ``` The order in which to include the dilutive instruments is therefore: