CERTYNEX IFRS ACADEMY

The interest expense of the dilutive convertible bond of Jarnac SA is 100,000 for the year. This expense is deductible at a rate of 30% (case datum). What amount is added to the diluted numerator on account of this bond?

100,000, that is the interest expense before tax, ignoring the 30% rate.

130,000, that is the interest expense increased by the tax.

30,000, that is the tax saving on the interest expense.

70,000, that is the interest expense reduced by the tax saving of 30%.