Explain how convertible securities are determined to be potentially dilutive ordinary shares and how those convertible securities that are not considered to be potentially dilutive ordinary shares enter into the determination of earnings per share data.
Answer to relevant QuestionsExplain the treasury-share method as it applies to options and warrants in computing dilutive earnings per share data.Pechstein Corporation issued 2,000 shares of $10 par value ordinary shares upon conversion of 1,000 shares of $50 par value preference shares. The preference shares were originally issued at $60 per share. The ordinary ...Rockland Corporation earned net income of R300,000 in 2010 and had 100,000 ordinary shares outstanding throughout the year. Also outstanding all year was R800,000 of 10% bonds, which are convertible into 16,000 ordinary ...Gabel Company has bonds payable outstanding with a carrying value of $406,000. When issued, Gabel recorded $3,500 of conversion equity. Each $1,000 bond is convertible into 20 shares of preference shares with par value of ...Lopez Company issues 10,000 shares of restricted shares to its CFO, Juan Carlos, on January 1, 2010. The shares have a fair value of €500,000 on this date. The service period related to the restricted shares is 5 years. ...
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