Lenovo 2016 Annual Report Download - page 205

203
2015/16 Annual Report Lenovo Group Limited
12 (LOSS)/EARNINGS PER SHARE
(a) Basic
Basic (loss)/earnings per share is calculated by dividing the (loss)/profit attributable to equity holders of the
Company by the weighted average number of ordinary shares in issue during the year after adjusting shares
held by the employee share trusts for the purposes of awarding shares to eligible employees under the long
term incentive program.
2016 2015
Weighted average number of ordinary shares in issue 11,108,654,724 10,714,763,044
Adjustment for shares held by employee share trusts (22,234,783)(44,369,898)
Weighted average number of ordinary shares in issue for
calculation of basic (loss)/earnings per share 11,086,419,941 10,670,393,146
US$’000 US$’000
(Loss)/profit attributable to equity holders of the Company (128,146)828,715
(b) Diluted
Diluted (loss)/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 two categories of
potential ordinary shares, namely share options and long-term incentive awards. They were anti-dilutive for
the year ended March 31, 2016, and dilutive for the year ended March 31, 2015.
2016 2015
Weighted average number of ordinary shares in issue for
calculation of basic (loss)/earnings per share 11,086,419,941 10,670,393,146
Adjustments for share options and long-term incentive awards –101,511,837
Weighted average number of ordinary shares in issue for
calculation of diluted (loss)/earnings per share 11,086,419,941 10,771,904,983
US$’000 US$’000
(Loss)/profit attributable to equity holders of the Company
used to determine diluted (loss)/earnings per share (128,146)828,715
Adjustments for the dilutive potential ordinary shares are as follows:
– For the share options, a calculation is performed 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.
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.
– For the long-term incentive awards, a calculation is performed to determine whether the long-term
incentive awards are dilutive, and the number of shares that are deemed to be issued.
There is no adjustment to (loss)/profit attributable to equity holders of the Company used for the calculation
of diluted (loss)/earnings per share.