Meridian SA has non-cumulative preference shares classified as equity. On 12 February, before the financial statements for the year ended 31 December are authorised for issue, the board proposes a preference dividend of 150,000 for that year; the shareholders are due to vote on it on 20 April. The profit attributable to the parent is 1,350,000 and the weighted average number of ordinary shares is 1,500,000. Write a note determining whether this dividend is deducted from the numerator of basic earnings per share for the year, separating case facts, rule and judgement.
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