diltion brings ur eps down.. soo if u see that the eps is more than the basic eps, if we convert the shares thats is y it is ignored ...

i hope it helps ..

take it in a way of conservative approach by the company to only report the diluted EPS for those securities which make the basic EPS go down for a company. (probable loss in ownership for the shareholders)

Remember, Dilution effectively increases the number of shares over which the company’s earnings would be spread if all potentially dilutive securities were exercised. In a way, it reduces a shareholder's stock price below the initial purchase price.

Thus, any loss which a shareholder may incurr in ownership due to the assumed conversion needs to be disclosed in the FS.....

On the other hand, anti-dilution makes EPS go up.... Again, think from a conservative approach. Any probable gains not to be reported until earned !

Hope that helps! Anyone with a different view?