The calculation of diluted EPS assumes that share options were exercised ant that the proceeds were used to buy treasury shares. S2: When applying the treasury share method for diluted EPS, the average market price of the ordinary share during the year is normally used as the assumed acquisition of treasury shares.
The calculation of diluted EPS assumes that share options were exercised ant that the proceeds were used to buy treasury shares. S2: When applying the treasury share method for diluted EPS, the average market price of the ordinary share during the year is normally used as the assumed acquisition of treasury shares.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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S1: The calculation of diluted EPS assumes that share options were exercised ant that the proceeds were used to buy treasury shares.
S2: When applying the treasury share method for diluted EPS, the average market price of the ordinary share during the year is normally used as the assumed acquisition of treasury shares.
A. both are true
B. both are false
C. S1 is true
D. S2 is true
Note: EPS is Earnings Per Share.
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