For the purposes of calculating diluted earnings per share, an entity shall adjust the profit attributable to ordinary shareholders by the after-tax effect of the following item(s) related to dilutive potential ordinary shares:

Question

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For the purposes of calculating diluted earnings per share, an entity shall adjust the profit attributable to ordinary shareholders by the after-tax effect of dividends, interest, other income, or expenses related to dilutive potential ordinary shares. This is because these items can have a dilutive effect on earnings per share when potential ordinary shares are converted to actual ordinary shares.

For the Purposes of Calculating Diluted Earnings Per Share, an Entity