Calculate the moderate earnings per share, Cost Accounting

A listed entity, had 3,000,000 $1 ordinary shares in issue, On 1 January 2009 CSA.CSA made a bonus issue of 1 for 3, On 1 May 2009.
CSA issued 2,000,000 $1 ordinary shares for $3.20 each, on 1 September 2009. For the year ended 31 December 2009 The profit before tax of CSA was $1,040,000. For the year Income tax expense was $270,000.

The essential earnings per share for the year ended 31 December 2008 was 15.4 cents.

On 1 November 2009 CSA issued changeable loan stock. Suppose the conversion was fully subscribed there would be enhance of 2,400,000 ordinary shares in issue. The effective interest rate is 7% and the liability element of the loan stock is $4,000,000.
CSA is subject to income tax at a rate of 30%.

Required:

(a) Measure the basic earnings per share to be reported in the monetary statements of CSA for the year ended 31 December 2009, including comparative, in agreement with the requirements of IAS 33 Earnings per Share.

(b) Calculate the moderate earnings per share for the year ended 31 December 2009, non-conflicted with the requirements of IAS 33 Earnings Per Share.

(c) Explain in brief why the bonus issue and issue at full market value are treated in a different way in arriving at basic earnings per share.

Posted Date: 5/29/2013 3:49:19 AM | Location : United States







Related Discussions:- Calculate the moderate earnings per share, Assignment Help, Ask Question on Calculate the moderate earnings per share, Get Answer, Expert's Help, Calculate the moderate earnings per share Discussions

Write discussion on Calculate the moderate earnings per share
Your posts are moderated
Related Questions
Phelps Glass Inc. has reported the following financial data: net revenues of $10 million, variable costs of $5 million, controllable, fixed costs of $2 million, non-controllable fi

Early in 2014, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2014 and

a.         What are the major equity and/or debt securities investments? What amounts are reported in the balance sheet? How significant are those amounts to the company's overall

By understanding the financial statements of a company, one of the first steps considered is the study of the changes in current financial position of the company and the purpose f

Q. A firm uses capital and labor to produce a single output good. The production function is given by F(K, L) = K 2 L where K is the amount of capital and L is the amount of labo

ShipShape Company makes 2 different types of boats, commercial fishing and sail boats both for recreation and competition. The company consists of two different departments, design

Assumptions of Break-Even Analysis 1. The break-even chart is fundamentally a static analysis; commonly changes can merely be displayed by drawing a new chart or a series of c

Smart Ltd ha sa unit selling price of $500 variable costs per unit of $325 and fixed costs of $140 000. Calculate the break even point in units using (a) a mathematical equations a

Apportionment of Overheads Apportionment of overheads occurs whereas the net value of an overhead item is shared among more or two cost centers that employ the overheads. Th

Rediger Inc. a manufacturing company, has provided the following data for the month of June. The balance in the Work in Process inventory account was $22,000 at the beginning of th