The Board tentatively decided at its meeting in March 2007 to make changes to the calculation of earnings per share (EPS). At this meeting the Board considered the application of the proposed changes to forward purchase contracts with or without remittance of dividends.
The Board tentatively decided that shares subject to a repurchase should be viewed as a separate class of ordinary shares and that the two-class method should therefore be applied for the calculation of EPS. The Board observed that, as a consequence, the calculation of EPS for forward purchase contracts under IFRSs and US GAAP will converge.
The Board considered further the calculation of EPS for forward purchase contracts with a choice of gross physical or net settlement, gross physically settled written put options and written put options with a choice of gross physical or net settlement. The Board observed that the calculation of EPS for those financial instruments under IFRSs and US GAAP differs because of differences in the underlying accounting, and tentatively decided not to align that calculation with US GAAP.