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Business, 08.08.2019 18:10 kenoknox

Which item is not an accurate representation of the impact of convertible bonds on the computation of eps? multiple choice if the convertible bonds have an antidilutive effect they are ignored in the computation of diluted eps. a convertible bond’s net-of-tax interest expense is added back to net income when determining diluted earnings per share only if the bond is known to be dilutive. current gaap requires that convertible bonds should only be considered as-if converted for diluted earnings per share if the share price is more than the conversion price. convertible bonds that were outstanding during the entire year will not have an impact on the weighted average number of common shares outstanding used in the calculation of basic earnings per share.

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