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SIC-24 — Earnings Per Share – Financial Instruments and Other Contracts that May Be Settled in Shares



  • Issued: November 2000
  • Effective date: 1 December 2000
  • Superseded by, and incorporated into, IAS 33 Earnings Per Share (Revised 2003), effective for annual periods beginning on or after 1 January 2005.

Summary of SIC-24

SIC-24 addresses the treatment of instruments that may be settled by a reporting enterprise either by payment of financial assets or by payment in the form of a transfer of ordinary shares of the reporting enterprise to the holder. SIC-24 states that all instruments that may result in the issuance of ordinary shares of the reporting enterprise to the holder of the financial instrument, at the option of the issuer or the holder, are potential ordinary shares of that enterprise. If a potential ordinary share is dilutive, (that is, its conversion to ordinary shares would decrease net profit per share from continuing ordinary operations) its dilutive effect is included in calculating diluted earnings per share.

Click for IASC Press Release on SIC-24 (PDF 33k).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.