IAS 33Chapter 6Lesson 3
The dilution test, the order of inclusion and contingent shares
Step 1 of 7Learning objectives
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Only potential shares that reduce earnings per share from continuing operations are used; they are tested one by one, starting with the one whose incremental earnings per share is lowest.
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Learning objectives
- Apply the dilution test taking continuing operations as the control number.
- Rank several instruments by incremental earnings per share and determine which are used.
- Treat contingently issuable shares in diluted earnings.
- Place contracts settled in shares or cash.