In Calculating the Weighted-Average Number of Ordinary Shares for Use

question 34

True/False

In calculating the weighted-average number of ordinary shares for use in earnings per share,it is necessary to adjust the number of shares for the ordinary share equivalents represented by the partly paid ordinary shares' rights to participate in voting at the annual general meeting.

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Definitions:

Contract Liability

The legal obligation that arises from entering into a contract, where parties are bound to fulfill the terms of the contract.

Warranty Liability

The legal obligation of a seller to compensate the buyer for defects or issues in the sold product or service that were guaranteed against in a warranty.

Nonconsumer Transaction

A transaction that primarily involves goods, services, or property intended for business or commercial purposes, rather than personal, family, or household use.

Personal Claims

Legal claims relating to or affecting a person's private rights, often involving compensation for personal harm or damage.