Diluted earnings per share
A)is sometimes higher than basic earnings per share.
B)takes into account all securities issued that can be converted into common shares.
C)shows how many dollars were earned for each dollar invested by common shareholders.
D)is not required to be disclosed for corporations reporting under IFRS.

Question

Quizplus · Accepted Answer

Diluted earnings per share considers the impact of all potential securities that could be converted into common shares, such as options, warrants, and convertible bonds, which could dilute the earnings per share.

Diluted Earnings Per Share