Document ID: chunk:federal_register_of_legislation:F2021C00879:body:0:p4
Version: federal_register_of_legislation:F2021C00879
Segment Type: other
Provision Reference: 
Character Range: 8580–11500

Contingently issuable ordinary shares are ordinary shares issuable for little or no cash or other consideration upon the satisfaction of specified conditions in a contingent share agreement.
 Dilution is a reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.
 Options, warrants and their equivalents are financial instruments that give the holder the right to purchase ordinary shares.
 An ordinary share is an equity instrument that is subordinate to all other classes of equity instruments.
 A potential ordinary share is a financial instrument or other contract that may entitle its holder to ordinary shares.
 Put options on ordinary shares are contracts that give the holder the right to sell ordinary shares at a specified price for a given period.
6 Ordinary shares participate in profit for the period only after other types of shares such as preference shares have participated. An entity may have more than one class of ordinary shares. Ordinary shares of the same class have the same rights to receive dividends.
7 Examples of potential ordinary shares are:
(a) financial liabilities or equity instruments, including preference shares, that are convertible into ordinary shares;
(b) options and warrants;
(c) shares that would be issued upon the satisfaction of conditions resulting from contractual arrangements, such as the purchase of a business or other assets.
8 Terms defined in AASB 132 Financial Instruments: Presentation are used in this Standard with the meanings specified in paragraph 11 of AASB 132, unless otherwise noted. AASB 132 defines financial instrument, financial asset, financial liability and equity instrument, and provides guidance on applying those definitions. AASB 13 Fair Value Measurement defines fair value and sets out requirements for applying that definition.

Measurement

Basic earnings per share
9 An entity shall calculate basic earnings per share amounts for profit or loss attributable to ordinary equity holders of the parent entity and, if presented, profit or loss from continuing operations attributable to those equity holders.
10 Basic earnings per share shall be calculated by dividing profit or loss attributable to ordinary equity holders of the parent entity (the numerator) by the weighted average number of ordinary shares outstanding (the denominator) during the period.
11 The objective of basic earnings per share information is to provide a measure of the interests of each ordinary share of a parent entity in the performance of the entity over the reporting period.

Earnings
12 For the purpose of calculating basic earnings per share, the amounts attributable to ordinary equity holders of the parent entity in respect of:
(a) profit or loss