CERTYNEX IFRS ACADEMY

The management accountant of Boréal SA describes in a note the treatment of an instrument mandatorily convertible into ordinary shares. Which sentence of this note is incorrect?

The shares to be issued on conversion are treated as outstanding shares in the calculation of basic earnings per share.

The starting point of this treatment is the date the contract is entered into.

The shares to be issued on conversion enter basic earnings per share from the date of actual conversion.

The same treatment applies to diluted earnings per share.