Intermediate Accounting 11 th ed Kieso Weygandt and

Intermediate Accounting, 11 th ed. Kieso, Weygandt, and Warfield Chapter 17: Dilutive Securities and Earnings per Share

DILUTIVE • Terjadi karena Penambahan jumlah saham yg beredar, sehingga untuk nilai saham yg sama sekarang harus dibagi dg jumlah lembar saham yang lebih besar. • Hilangnya nilai pemegang saham yang ada. Atau pengurangan hasil/hak surat berharga karena jumlah yang dikeluarkan melebihi jumlah yang semestinya, atau karena adanya pemberian hak opsi untuk memperoleh surat berharga tersebut.

DILUTIVE • Pengaruh atas pendapatan perlembar saham jika semua surat berharga yang konvertibel dikonversikan atau semua hak beli saham dilaksanakan. • Terdapat beberapa Dilutive yaitu: 1. Kepemilikan 2. Nilai Pasar 3. Laba dan Nilai buku Seperti dalam emisi Warrant dan surat berharga konversi. Perusahaan 2 dengan jumlah emisi warrant dan surat berharga konversi yg signifikan diharuskan melaporkan laba berdasar Fully Diluted Basis

Convertible Bonds: Concepts n Pd saat penerbitan: Metode pencatatannya mengikuti methode yg digunakan untuk mencatat penerbitan hutang langsung. n Pada saat Konversi: Dipakai metode nilai buku Untuk mencatat konversi. n Cost of induced conversions (konversi yg dirangsang) dg tujuan mengurangi biaya bunga atau meningkatkan rasio hutang terhadap ekuitas. n Diakui dengan cara seperti pada gain and losses atas penarikan hutang non konvertibel.

Conversion of Debt: Example Given: One $1, 000 bond, issued at $45 premium The bond is convertible into 10 common shares of $10 par At conversion: unamortized premium is $30 Record the conversion using the book value method.

Conversion of Debt: Example Bonds payable 1, 000 Premium on bonds payable 30 Common stock Paid-in-cap 100 930

Convertible Preferred Stock: Concepts u Convertible preferred stock adalah equity, dikurangi penebusan kewajiban. u Conversion adalah transaksi ekuitas: Tidak ada keuntungan atau kerugian yang diakui. u If converted, valuation is based on the book value of the preferred stock.

Stock Warrants: Concepts • Stock warrants (surat jaminan) adalah sertifikat yg memberikan hak kpd pemegangnya utk memperoleh saham pd harga tetentu selama periode yg ditetapkan. • Mempunyai pengaruh dilutif(mengurangi laba per saham) dg konversi sekuritas konvertibel • Cash is received by issuer upon exercise. • Stock warrants are also known as stock options.

Stock Warrants yg diterbitkan dg sekuritas lainnya Stock warrants may be: l l either detachable warrants, or non-detachable warrants If warrants are detachable, value of the warrants is determined by: l l either the proportional method, or the incremental method. If warrants are non-detachable, no allocation to warrants is made.

Proportional Method: Example Given: n Bonds, with a par value of $10, 000 and detachable warrants, are sold at par. n Bonds’ FMV without the warrants is $9, 800. n FMV of warrants is $400. Allocate the $10, 000 to bonds and the detachable warrants.

Proportional Method: Example Allocate to Warrants: Total proceeds from the bond issue: $10, 000 [given] $400/$10, 200 FMV [times] $10, 000 [issue] $392 Allocate to Bonds: $9, 800/$10, 200 FMV X $10, 000 [issue] $9, 608

Proportional Method: Example Journal entries: Cash Discount (Bonds Payable) Bonds Payable Cash Paid-in (Stock warrants) 9, 608 392 10, 000 392

Incremental Method: Example Given: o Bonds, with a par value of $10, 000 and detachable warrants, are sold at par. o Market price of warrants, $300. o Market price of bonds without warrants, not determinable. Determine the amounts allocated to the bonds and the warrants Total receipt less warrants = bonds $10, 000 — $300 = $9, 700

Hak utk memesan saham tambahan (Stock Rights) ► Stock rights adalah Hak istimewa yang diberikan kepada pemegang saham untuk membeli saham terlebih dulu sesuai dengan proporsi yang mereka miliki, apabila perusahaan menerbitkan saham baru. ► Unlike warrants, rights are of short duration. ► No journal entries are made, when rights are issued.

Stock Options: Important Dates Work start date Grant date Vesting date Exercise date Expiration date Options are granted to employee Date employee can first exercise options Employee exercises options Unexercised options expire

Measuring Compensation Expense Intrinsic value method: § Compensation expense adl kelebihan hrg psr shm atas hrg opsi pd tgl ketika sejumlah saham yg berhak diterima krywn diberikan dan harga opsi atau hrg beli telah diketahui. Fair value method: Compensation expense adlh berdsrkan nilai wajar opsi yg diharapkan menjadi haknya pd tgl opsi itu dihibahkan kpd krywn. § option pricing models may be used to determine fair value.

Stock Compensation Plans: Controversy • Penelitian menunjukkan intrinsic method menghslkan laba “ditetapkan terlalu tinggi” • Sgt sedikit pershn use fair value method • Options menguntungkan scr tdk proporsional hanya pada sedikit top eksekutif. • Political and economic pressures on FASB.

Earnings Per Share: Concepts n Reported on the income statement. n EPS is often the focus of investors. n Dilution of EPS means reduction in EPS. n Reduction in EPS results from conversion of other securities into common stock. n Shareholders want to know the extent of reduction in EPS, if dilution takes place.

Relation between Basic and Diluted EPS

Simple Capital Structure: Basic EPS n Simple capital structure: n n Terdiri dari saham biasa atau tdk mencakup saham biasa potensial Basic EPS: Net income — Preferred dividends Weighted average outstanding common shares

Earnings Per Share: Complex Structures: Summary Dual EPS Presentation Basic EPS Net income adjusted for interest (net of tax) and preferred dividends Weighted average number of common shares assuming maximum dilution Diluted EPS Dilutive Convertibles Dilutive Options and Warrants Dilutive Contingent Issues

Complex Capital Structures n n n Complex capital structures have potentially dilutive securities, such as: Convertible bonds or preferred stock. Options or warrants, or Other rights that could reduce earnings per share. Securities that could reduce EPS are dilutive. Securities that could increase EPS are antidilutive.

Diluted Earnings Per Share: Methods • Pengaruh dilutive dari sekuritas 2 yg konvertible diukur dgn if-converted method (metode-Tdk dikonversi) • Pengaruh dilutive dari options and warrants diukur dgn treasury stock method. • Untuk menghitung dilution, digunakan tingkat konversi yg paling menguntungkan pemegang sekuritas (atau disebut maximum dilutive conversion rate).

The If-Converted Method Konversi sekuritas 2 kedlm common stock diasumsikan terjadi pada awal tahun atau tgl penerbitan, jika belakangan. u Convertible bonds: Biaya bunga (net of tax) ditambahkan kembali ke net income. u Convertible preferred: Tdk ada pengurangan untuk preferred dividends. u Jumlah rata 2 tertimbang dari saham ditambah dgn tambahan common shares yang diasumsikan diterbitkan. u

The Treasury Stock Method Berlaku untuk options dan warrants (serta yang ekuivalen dgn mereka). Options dan warrants diasumsikan digunakan pada awal tahun. Hasil dari penggunaan (exercise) options diasumsikan digunakan untuk membeli-kembali common shares pada harga pasar rata 2. Harga penggunaan per saham tsb harus lebih kecil daripada harga pasar persaham agar dilution terjadi.