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
Typical Causes of Material Variances Price Variances a) Paying lower or higher prices than planned. b) Losing or gaining quantity discounts via buying in large

The Cutting Department of the Rock Island Custom Cabinetry Corporation (a process costing production) had no work in process at the beginning of the period, 12,000 units were compl

Break-even analysis can be used to work out either a break-even volume or revenue, as per given a multiple product scenario. This is achieved using 'average contribution per unit'

Small Steps sells step stools. Their budget information is shown below. selling price: $40 per stool Variable expense:$30 per stool Fixed Expense:$24,000 use the above inform

USES O F CVP ANALYSIS 1. .It allows preparation of flexible budgets. 2. It provides help in forecasting accurate profit. 3. It aids in formulating price policy. 4

Variable Overhead Variance This is the dissimilarity between the variable overheads absorbed and the actual variable overheads warned. Therefore it can be described as the und

William Potter is a plumber currently operating as a Sole Trader in Levin. William has approached you, a tax accountant, for your advice on certain tax matters. William's brothe

In an application of a hand-held clinical thermometer for the National Health Service it is required to use disposable temperature sensors and digital read out of temperature betwe

fixed expenses are incurred equally in the two half year periods,calculate

Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked your assistance in preparing cash-flow information for the last three months of this year. Sele