M, Inc Supplies Consumer Products Used in the U

Essay

M, Inc. supplies consumer products used in the U.S. and other markets. In its 2009 Annual Report to Shareholders, M, Inc. disclosed the following footnote about its EPS:
"The consolidated financial statements are presented in accordance with SFAS No. 128, "Earnings Per Share." Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per common share incorporate the incremental shares issuable upon the assumed exercise of stock options and upon the assumed conversion of the Company's Convertible Notes in fiscal 2009 as if conversion to common shares had occurred at the beginning of the fiscal year. Earnings have also been adjusted for interest expense on the Convertible Notes in fiscal 2009."
Explain why M mentioned the adjustment in the last sentence of the footnote.