CERTYNEX IFRS ACADEMY

On 1 October, Brenne SA enters into a contract for a mandatorily convertible instrument: it will be converted on 30 June of the following year into 400,000 ordinary shares. The year ends on 31 December (weighting in months for the case). How many shares under the contract enter the weighted average number for basic earnings per share for the year?

400,000: the shares are counted in full from the start of the year, without weighting.

100,000: the shares are counted from the date the contract is entered into, 1 October, that is 3 months out of 12.

0: the shares are counted from their issue on conversion, on 30 June of the following year, the date on which the instrument would be converted.

200,000: the shares are counted from 1 July, in the middle of the year.