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:
A) dividends only
B) dividends, interest, other income or expenses
C) interest only
D) other income or expenses only

Question

Quizplus · Accepted Answer

When calculating diluted earnings per share, the after-tax effect of all potential dilutive instruments, including dividends, interest, other income, and expenses, must be considered. Therefore, option B is the best choice as it considers all possible items that could affect diluted earnings per share.

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