CERTYNEX IFRS ACADEMY

Sorel SA has partly paid ordinary shares, outstanding throughout the year, which entitle their holders to 60% of the dividend of a fully paid ordinary share. How are they treated in the weighted average number of shares for basic earnings per share?

As one whole share each, the partial payment having no effect on their number, even if payment is not complete.

As zero shares until fully paid, at which date they enter the calculation.

As potential ordinary shares, included in diluted but not in basic earnings.

In proportion to their dividend entitlement: each counts as 0.6 of a fully paid ordinary share.