CALCULATING THE EFFECT OF EMPLOYEE STOCK OPTIONS ON DILUTED EPS

This paper focuses on how to calculate diluted earnings per share (DEPS) when a firm has outstanding employee stock options (ESOs). Three possible methods are described and compared. The first is the current International Accounting Standard 33 – Earnings Per Share (IAS 33) approach which is based on the intrinsic value of the ESOs. The second method, advocated by Core et al. (2002), is very similar to that of IAS 33 but instead of the intrinsic value uses the fair value of the outstanding options. This paper derives an alternative method which adjusts the earnings for the year by the change in fair value of the outstanding ESOs, with no adjustment to the denominator in the DEPS calculation. The three methods are compared using a simple firm. The earnings adjustment method best describes the change in economic value of the current shareholders, the fair value is more useful in predicting future profits, and the intrinsic value method appear to provide no additional information to that already contained in the other two measures. The earnings adjustment method has a further advantage in that it provides an identical result at a DEPS level to that which would have been obtained if the ESOs were cash-settled and treated as liabilities in terms of IFRS 2. Thus using this method will improve comparability as cash-settled and equity-settled options have a very similar economic effect on current shareholders.employee stock options EPS Diluted EPS

The effects of climate change and variation in New Zealand: An assessment using the CLIMPACTS system

Along with a need to better understand the climate and biophysical systems of New Zealand, the need to develop an improved capacity for evaluating possible changes in climate and their effects on the New Zealand environment has been recognised. Since the middle of 1993 the CLIMPACTS programme, has been focused on the development of such a capacity, in the first instance for the agricultural sector. the goals of this present assessment are: 1. To present current knowledge on likely scenarios of climate change and associated uncertainties in New Zealand; 2. To present current knowledge, based on quantitative analyses using a consistent set of scenarios, on the likely effects of climate change on a range of agricultural and horticultural crops of economic importance; 3. To demonstrate, by way of this report and the associated technical report, the capacity that has been developed for ongoing assessments of this kind in New Zealand. This report has been prepared for both the science and policy communities in New Zealand. There are two main components: 1. The detailed findings of the assessment, presented in a series of chapters; 2. An annex, which contains technical details on models used in the assessment

Comparison of injuries to New Zealand rock lobsters (Jasus edwardsii) caused by hand versus snare collection

Following the prohibition in New Zealand of lobster snares in late 2005, we undertook research to compare the frequency and extent of injuries to rock lobsters (Jasus edwardsii) (Hutton) caused by recreational SCUBA divers using lobster snares compared with hand collection. Rock lobsters were sampled between January 2006 and October 2006 from multiple dive sites around the North Island of New Zealand. Of the 124 rock lobsters caught, 20.9% were in a soft shell state. Female rock lobsters constituted 43.5% of the catch, but only one was carrying eggs. Female mean tail width was 72.2 mm; male mean tail width was 71.9 mm. We found that hand collection caused significantly more injuries than snare collection, to both soft shell and hard shell animals. Hand collection also resulted in more major injuries, with 18% of hard shell animals and 31% of soft shell animals losing two or more limbs. We recommend that the prohibition on the use of rock lobster snares be lifted, as their use appears to significantly reduce injury and stress to rock lobsters in recreational dive areas, and increase the survival of undersized individuals released after capture

New low-mass members of the Octans stellar association and an updated 30-40 Myr lithium age

The Octans association is one of several young stellar moving groups recently discovered in the Solar neighbourhood, and hence a valuable laboratory for studies of stellar, circumstellar disc and planetary evolution. However, a lack of low-mass members or any members with trigonometric parallaxes means the age, distance and space motion of the group are poorly constrained. To better determine its membership and age, we present the first spectroscopic survey for new K and M-type Octans members, resulting in the discovery of 29 UV-bright K5-M4 stars with kinematics, photometry and distances consistent with existing members. Nine new members possess strong Li I absorption, which allow us to estimate a lithium age of 30-40 Myr, similar to that of the Tucana-Horologium association and bracketed by the firm lithium depletion boundary ages of the Beta Pictoris (20 Myr) and Argus/IC 2391 (50 Myr) associations. Several stars also show hints in our medium-resolution spectra of fast rotation or spectroscopic binarity. More so than other nearby associations, Octans is much larger than its age and internal velocity dispersion imply. It may be the dispersing remnant of a sparse, extended structure which includes some younger members of the foreground Octans-Near association recently proposed by Zuckerman and collaborators.Comment: Accepted for publication in MNRAS (16 pages, 5 tables

Spatially Resolved Spectroscopy of Starburst and Post-Starburst Galaxies in The Rich z~0.55 Cluster CL0016+16

We have used the Low Resolution Imaging Spectrograph (LRIS) on the W.M. Keck I telescope to obtain spatially resolved spectroscopy of a small sample of six post-starburst and three dusty-starburst galaxies in the rich cluster CL0016+16 at z=0.55. We use this to measure radial profiles of the Hdelta and OII3727 lines which are diagnostic probes of the mechanisms that give rise to the abrupt changes in star-formation rates in these galaxies. In the post-starburst sample we are unable to detect any radial gradients in the Hdelta line equivalent width - although one galaxy exhibits a gradient from one side of the galaxy to the other. The absence of Hdelta gradients in these galaxies is consistent with their production via interaction with the intra-cluster medium, however, our limited spatial sampling prevents us from drawing robust conclusions. All members of the sample have early type morphologies, typical of post-starburst galaxies in general, but lack the high incidence of tidal tails and disturbances seen in local field samples. This argues against a merger origin and adds weight to a scenario where truncation by the intra-cluster medium is at work. The post-starburst spectral signature is consistent over the radial extent probed with no evidence of OII3727 emission and strong Hdelta absorption at all radii i.e. the post-starburst classification is not an aperture effect. In contrast the dusty-starburst sample shows a tendency for a central concentration of OII3727 emission. This is most straightforwardly interpreted as the consequence of a central starburst. However, other possibilities exist such as a non-uniform dust distribution (which is expected in such galaxies) and/or a non-uniform starburst age distribution. The sample exhibit late type and irregular morphologies.Comment: accepted for publication in PAS

Model-independent measurement of internal stellar structure in 16 Cygni A and B

We present a method for measuring internal stellar structure based on asteroseismology that we call "inversions for agreement." The method accounts for imprecise estimates of stellar mass and radius as well as the relatively limited oscillation mode sets that are available for distant stars. By construction, the results of the method are independent of stellar models. We apply this method to measure the isothermal sound speeds in the cores of the solar-type stars 16 Cyg A and B using asteroseismic data obtained from Kepler observations. We compare the asteroseismic structure that we deduce against best-fitting evolutionary models and find that the sound speeds in the cores of these stars exceed those of the models.Comment: Accepted for publication in The Astrophysical Journa