Question: Future Ltd had basic earnings of R 8 0 0 , 0 0 0 for 2 0 2 3 and had 1 , 5 0

Future Ltd had basic earnings of R800,000 for 2023 and had 1,500,000 ordinary shares in issue throughout the year. The company also had 250,000 share options outstanding at 31 December 2023, granted to directors at no cost. Briefly explain why the capitalisation issue must be adjusted retrospectively in the EPS calculation.

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