Adjustments for dilutive securities and the adjustment to weighted average number of shares outstanding presumes that the dilutive securities are converted to common shares:
A) as of the beginning of the year.
B) as of the end of the year.
C) as of the middle of the year.
D) as of the point in time where the maximum number of shares are outstanding.

Question

Quizplus · Accepted Answer

Dilutive securities are assumed to be converted into common shares at the beginning of the year or when they are issued, if later, to calculate diluted earnings per share.

Adjustments for Dilutive Securities and the Adjustment to Weighted Average