http://accountinginfo.com/financial-accounting-standards/asc-200/260-earnings-per-share.htm "If-converted method" for convertible securities 1. It is assumed that convertible securities were converted --> at the beginning of the period --> or at the time of issuance if issued during the period 2. Add additional number of common shares --> that would have been issued if they were converted 3. For convertible preferred shares --> add back dividends to convertible preferred shares to income 4. For convertible debt --> add back interest for convertible debt to income