To calculate the weighted average number of ordinary shares (WANOS), shares issued for cash at full market price are weighted according to the time they have been outstanding during the period.

First, determine the number of new shares issued:

$$\frac{\$6,000,000}{\$1.50} = 4,000,000 \text{ shares}$$

Next, apply the time-weighting factors:

• Opening shares: 10,000,000 (Outstanding for the full year: $12/12$)
• New issue: 4,000,000 (Outstanding from July 1st: $6/12$)

Calculation:

$$10,000,000 + (4,000,000 \times \frac{6}{12}) = 10,000,000 + 2,000,000 = 12,000,000$$

IFRS Foundation, International Accounting Standard 33: Earnings per Share, Paragraph 20.

Citation: "Using the weighted average number of ordinary shares outstanding during the period reflects the possibility that the amount of shareholders' capital may have varied during the period as a result of a larger or lesser number of shares being outstanding at any time... The weighted average number of ordinary shares outstanding during the period is the number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares bought back or issued during the period multiplied by a time-weighting factor."

Massachusetts Institute of Technology (MIT) OpenCourseWare, 15.511 Corporate Accounting, Lecture Notes on EPS.

Relevance: Confirms the methodology for time-weighting shares issued during the period for the calculation of the denominator in Basic EPS.