Hauteville SA has 2,000,000 units ordinary shares outstanding throughout the year. An agreement requires it to issue 120,000 units additional shares for little or no consideration if a revenue target is met; the target and the other conditions are met on 1 October, 3 months before the reporting date of 31 December (weighting in months). Calculate the weighted contingent shares included in basic earnings, then the weighted average number of ordinary shares.
- Ordinary shares outstanding throughout the year
- 2,000,000
- Contingently issuable shares
- 120,000
- Months elapsed since the conditions were met
- 3