so i know when calculate EPS if it is post conversion eps is higher we stick to the lower original eps
but the conversion changed eps after all, even when we dont say it is a diluted eps, shouldnt the eps still be different? why not
Recall that the diluted EPS is hypothetical: assuming that securities were converted when, in fact, they weren’t.
Nobody is worried if the hypothetical conversion makes them better off; they’re worried if it makes them worse off.
At least, that’s the position of the accounting standard setting bodies.
Maybe because conservatism is important?