Notes to the Financial Statements (continued)  In the prior year, the parent entity raised $103,744,599 (before costs of $23,487) and issued 37,717,029 new  shares by means of a pro rata renounceable rights issue. The rights issue closed on 19 December 2001 and  the new shares were allotted on 14 January 2002.  In accordance with AASB 1027 “Earnings Per Share”, as a result of the rights issue disclosed above, the prior  period basic and diluted earnings per share calculations have been adjusted by a bonus element, due to the  market price immediately prior to the rights issue exercise date exceeding the rights issue exercise price.  The 10,500,000 share options with an exercise price of $3.21 per option and the 4,000,000 share options with  an exercise price of $4.10 per option have been excluded from the current year diluted earnings per share  calculation. For these options, the exercise price exceeded the average market price for the year ended 30  June 2003 and therefore were not considered to be dilutive.  There have been no other conversions to, calls of, or subscriptions for ordinary shares or issues of potential  ordinary shares since the reporting date and before the completion of this financial report.  37  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003 CONSOLIDATED  2003  2002  $000  $000  5.  Earnings Per Share  The following reflects the income and share data used in  the calculations of basic and diluted earnings per share:  Net profit  161,676  129,059  Adjustments:  Net profit attributable to outside equity interest  (10,627)  (782)  Earnings used in calculating basic and diluted  earnings per share  151,049  128,277  Number of Shares  2003  2002  Weighted average number of ordinary shares  used in calculating basic earnings per share  1,055,893,449  1,039,999,770  Effect of dilutive securities:  Share Options -  1,165,375  Adjusted weighted average number of ordinary  shares used in calculating diluted earnings per  share  1,055,893,449  1,041,165,145 