CERTYNEX IFRS ACADEMY

Which statements about the dilution test for potential ordinary shares are correct? More than one answer is possible.

Potential ordinary shares are dilutive when their conversion decreases earnings per share from continuing operations, or increases the loss per share from those operations.

An instrument is dilutive as soon as it decreases total net earnings per share, even if earnings per share from continuing operations increases.

Profit from continuing operations attributable to the parent serves as the control number for establishing whether potential shares are dilutive or antidilutive.

A loss from discontinued operations can make total profit antidilutive while continuing operations remain dilutive.

The calculation of diluted earnings assumes the conversion of antidilutive instruments in order to present the most prudent assumption.