CERTYNEX IFRS ACADEMY

Dorian SA has bought call options and put options on its own shares, in the money at the reporting date. How do these purchased options enter the calculation of diluted earnings per share?

They are included under the treasury stock method, like options issued by the entity in the denominator calculation.

They are deducted from the weighted average number of shares in the diluted denominator.

They adjust the numerator by the price paid to acquire them, spread over the year.

They are not included, because including them would be antidilutive when they are in the money.