IAS 33Chapter 2Lesson 1
Ordinary shares, potential ordinary shares and dilution
Step 1 of 6Learning objectives
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IAS 33's vocabulary distinguishes the ordinary share, subordinate to all other classes, from the potential ordinary share, which could become one; dilution measures the fall in earnings per share that would result.
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Learning objectives
- Define the ordinary share and the potential ordinary share.
- Recognise options, warrants and contingently issuable shares among potential ordinary shares.
- Tell dilution from antidilution.