BROADENING OUR HORIZONS - Arrium

Notes to the Financial Statements(g) Unrecognised deferred tax assetsDeferred tax assets have not been recognised in respect of capital losses amounting to $4.1m (2010: $4.1m).The deductible temporary differences do not expire under current tax legislation. However, tax losses are subject to continuity ofownership tests. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxableprofit will be available against which the consolidated entity can utilise the benefits.6. Earnings per shareThe Group presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by dividing the profit orloss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during theperiod, adjusted for shares held by the Company’s sponsored employee share plan trust. Diluted EPS is determined by adjusting the profitor loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for shares heldby the Company’s sponsored employee share plan trust, for the effects of all dilutive potential ordinary shares which comprise shareoptions granted to employees.81The following reflects the earnings and share data used in the calculation of basic and diluted earnings per share:(a) EarningsProfit attributable to equity holders of the parent 230.3 258.4Earnings used in calculating basic and diluted earnings per share 230.3 258.4(b) Number of ordinary sharesNumber of sharesWeighted average number of ordinary shares used in the calculation of basic earnings per share 1,328,619,998 1,324,634,147Dilutive effect of executive share options 1 27,782 108,955Dilutive effect of employee compensation shares — —Weighted average number of ordinary shares used in the calculation of diluted earnings per share 1,328,647,780 1,324,743,102Basic earnings per share (cents per share) 17.33 19.51Diluted earnings per share (cents per share) 17.33 19.511 Executive share options relate solely to ordinary shares. All potential ordinary shares, being options to acquire ordinary shares, are considereddilutive. There were no outstanding options at 30 June 2011.Issues after 30 June 2011There have been no other subscriptions for ordinary shares or issues of potential ordinary shares since the reporting date and before thecompletion of the financial report.2011$m2010$m