The link with IAS 33: dilution

Learning objectives

• Explain that convertible instruments are included in diluted earnings per share using the if-converted method.L3
• Identify the elements of a compound instrument that enter the numerator and the denominator of diluted earnings per share.L3

Normative references

The syntheses of the reference register are written in French: only the paragraph reference is shown here.

1 question

• Lagune SA has issued convertible bonds split into a liability component and an equity component. To calculate diluted earnings per share under the if-converted method, leaving aside the case of antidilutive instruments, how is the convertible bond taken into account?L3