Lenovo 2009 Annual Report Download - page 114

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2008/09 Annual Report Lenovo Group Limited
112
NOTES TO THE FINANCIAL STATEMENTS (Continued)
14 (Loss)/earnings per share
(a) Basic
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to shareholders of the Company by
the weighted average number of ordinary shares in issue during the year.
2009 2008
Weighted average number of shares for the purpose
of basic earnings per share 8,851,779,460 8,781,101,650
US$’000 US$’000
(Loss)/profit attributable to shareholders of the Company
– Continuing operations (226,392) 464,343
– Discontinued operations – 19,920
(226,392) 484,263
(b) Diluted
Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding due to
the effect of all dilutive potential ordinary shares. The Company has four categories of dilutive potential ordinary shares:
convertible preferred shares, share options, long-term incentive awards and warrants.
For the year ended March 31, 2009, all dilutive potential ordinary shares were antidilutive as the Group incurred a loss
for the year.
For the year ended March 31, 2008, adjustments for the dilutive potential ordinary shares are as follows:
– For the convertible preferred shares, they were antidilutive as the amount of the dividend and related finance costs
per ordinary share attainable on conversion exceeded basic earnings per share and they were excluded from the
weighted average number of ordinary shares in issue for calculation of diluted earnings per share.
– For the share options and warrants, a calculation is done to determine the number of shares that could have been
acquired at fair value (determined as the average periodic market share price of the Company’s shares) based on
the monetary value of the subscription rights attached to outstanding share options and warrants. The number
of shares calculated as above is compared with the number of shares that would have been issued assuming the
exercise in full of the share options and warrants.
– For the long-term incentive awards, a calculation is done to determine whether the long-term incentive awards are
dilutive, and the number of shares that are deemed to be issued.