Am sorry about the late reply to your responses. I will take this e.g from Kieso et al.
Date Share Changes Shares Outstanding
Jan 1 begining balance 180,000
May 1 Purchased 30,000 treasury shares 30,000
150,000
July 1 300,000 additional shares 300,000
450,000
December 31 Issued 50,000 shares 50,000
500,000
............................................................................................................................................
Calculation of Weighted Average number of shares
date Shares Out'nding Restatement Fraction of Year Weighted Shares
Jan1- May1 180,000 3 4/12 180,000
May1-Dec31 150,000 3 8/12 300,000
Total 480,000
My Qn:
What is the restatement factor 3, and how do u calculate it?
Forgive me if there are typos, am in a hurry.
Thank you.