EPS / dEPS

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burberryjam

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If there are options outstanding but not exercisable until after the end of the period we are examining, would these be included in a diluted EPS calculation? Let’s assume they are dilutory.
I remember a question where they were adamant you include them, but I don’t see that in the CFAI books..
 
You should inculde them. Same for convertible preferred shares, you include them even though they are not converted in the current period.
 
even if they are contractually unexercisable in that period?? makes no sense?
 
You include only securities that could have been converted/exercised in the period (whether they were converted or not).
If they’re not convertible or exercisable this period, don’t include them.
 
Thanks again S2000magician,
one more sloppy mock answer I need to slide out of my head!
 
yes i am ready…..
Here with my reading buddies cracking down concepts…. Hopefully we will have positive news come January 26th.
Hope you’re ready too..
 
Hope we will stay in touch during preparing for L2 this spring….
 
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