An entity must disclose instruments that ____________
Select the words that correctly complete the above statement.
A. will NOT dilute basic earnings per share in the future because they were included in the calculation of diluted earnings per share as they were dilutive for the period(s) presented.
B. will NOT dilute basic earnings per share in the future and were NOT included in the calculation of diluted earnings per share because they are antidilutive for the period(s) presented.
C. could potentially dilute basic earnings per share in the future but were NOT included in the calculation of diluted earnings per share because they are antidilutive for the period(s) presented.
C. could potentially dilute basic earnings per share in the future but were NOT included in the calculation of diluted earnings per share because they are antidilutive for the period(s) presented.
Entities are required to disclose instruments that could potentially dilute the basic earnings per share in the future, even if they were not included in the diluted earnings per share calculation for the current period because they were antidilutive. This disclosure provides transparency to users of financial statements, enabling them to understand the potential impact of these instruments on future earnings per share calculations should their conditions be met.
