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    IAS-33 Question

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    taha
    The document contains 6 questions regarding the calculation of basic and diluted earnings per share (EPS) for different companies based on information provided about shares outstanding, earnings, stock dividends, rights issues, and convertible loans. The questions must be solved to determine the appropriate EPS values for each reporting period described.

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    IAS-33 Question

    Uploaded by

    taha
    132 views2 pages
    The document contains 6 questions regarding the calculation of basic and diluted earnings per share (EPS) for different companies based on information provided about shares outstanding, earnings, stock dividends, rights issues, and convertible loans. The questions must be solved to determine the appropriate EPS values for each reporting period described.

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    The document contains 6 questions regarding the calculation of basic and diluted earnings per share (EPS) for different companies based on information provided about shares outstanding, earnings, stock dividends, rights issues, and convertible loans. The questions must be solved to determine the appropriate EPS values for each reporting period described.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    132 views2 pages

    IAS-33 Question

    Uploaded by

    taha
    The document contains 6 questions regarding the calculation of basic and diluted earnings per share (EPS) for different companies based on information provided about shares outstanding, earnings, stock dividends, rights issues, and convertible loans. The questions must be solved to determine the appropriate EPS values for each reporting period described.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 2

    Question-1

    The following information is presented for a company:

    Preferred stock, Rs.10 par, 6%, 30,000 shares issued and outstanding Rs.300,000

    Ordinary shares, Rs.5 par, 100,000 shares issued and outstanding Rs.500,000

    Net income 400,000

    The company paid a cash dividend on preferred stock. The preferred dividend would therefore equal
    Rs.18,000

    Required: Calculate Basic EPS.

    Question-2

    On January 1, 2X12, Stacey Company had the following shares outstanding:

    6% Cumulative preferred stock, Rs.100 par value 150,000 shares Rs.1,5000,000

    Ordinary Shares, Rs.5 par value 500,000 shares Rs.2,500,000

    During the year, the following occurred:

    On April 1, 2X12, the company issued 100,000 shares of ordinary shares at full market price.

    On September 1, 2X12, the company declared and issued a 1 for 4 stock dividends. For the year ended
    December 31, 2X12, the net income was Rs.2,200,000.

    Required: Calculate Basic EPS.

    Question-3

    Famous Plc had earnings of Rs.1,000,000 and 2,000,000 Rs.1 equity share capital at 1 Jan 2007. On 30
    June Famous issued 3,000,000 new shares at full market price, and on 30 Sep 2007, Famous made a
    bonus issue of 1 new share for every 5 already held. Last year´s EPS was disclosed as 0.16. Calculate the
    basic EPS for Famous for the year ended 31 Dec 2007 and restate the comparative EPS.

    Question-4

    Profit attributable to ordinary equity holders of ABS limited company:

    20X5 20X6

    4,000 5,000

    No. of shares outstanding at the beginning of the year 2,000 The company had a 1 for 4 rights issue.
    Exercise price: Rs.8.00 Date of rights issue: 31 Jan 20X6 Last date to exercise rights: 1 Apr 20X6 Market
    price of 1 ordinary share immediately before exercise on 1 April 20X6: Rs.12.00 Calculate EPS on 31 Dec
    (the reporting date) and restated for 20X5.

    Question-5

    Following data belongs to Diluted Limited (P.T.O)


    Profit attributable to ordinary shareholders Rs.2,475,000

    No of shares outstanding during the year 14,000,000. Convertible loan 7% 2,000,000 converted to 40
    shares for each Rs.100 after two years. Tax rate 30% Calculate the basic EPS and diluted EPS.

    Question-6

    On 1 Jan  2008 ordinary shares 1,000,000 On 1 Apr 2008 issued at full market price 200,000 .On 30 Sep
    2008 Right issue of 1 for 20 at Rs.2.00 The fair value of the shares on the last day before the issue was
    Rs.3.00 The profit for the period was Rs.500,000 Reported EPS for the year ended 31 Dec 2007 was 0.2
    Calculate the EPS for year ended 31 Dec 2008 and the restated EPS for year 31 Dec 2007.

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