Earnings Per Share

12 Months Ended

Dec. 31, 2020

34.	EARNINGS PER SHARE

Net income and weighted average number of common stocks used in the calculation of earnings per share were as follows:

Net Income

	Year Ended December 31
	2018			2019			2020
	NT$			NT$			NT$
	(In Millions)
Net income used to compute the basic earnings per share
Net income attributable to the parent	$	37,557		$	32,947		$	33,419
Assumed conversion of all dilutive potential common stocks
Employee stock options, employee compensation of subsidiaries		(6	)		(4	)		(7	)
Net income used to compute the diluted earnings per share	$	37,551		$	32,943		$	33,412

Weighted Average Number of Common Stocks

(Millions Shares)

	Year Ended December 31
	2018		2019		2020
Weighted average number of common stocks used to compute the basic earnings per share		7,757		7,757		7,757
Assumed conversion of all dilutive potential common stocks
Employee compensation		9		8		8
Weighted average number of common stocks used to compute the diluted earnings per share		7,766		7,765		7,765

As Chunghwa may settle the employee compensation in shares or cash, Chunghwa shall presume that it will be settled in shares and take those shares into consideration when calculating the weighted average number of outstanding shares used in the calculation of diluted EPS if the shares have a dilutive effect. The dilutive effect of the shares needs to be considered until the approval of the number of shares to be distributed to employees as compensation in the following year.