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Earnings Per Share – Example 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Earnings Per Share – Example 2

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  • July 16, 2021 at 2:33 pm #627944
    Aayush98
    Member
    • Topics: 17
    • Replies: 9
    • ☆

    Hi,

    I noted in the answer for Example 2 that all figures have been multiplied by a bonus fraction of 3/2, why is this the case?

    If so, should we use this as a fixed template and always use a fraction?

    Please confirm.

    Thank you.

    Aayush Shah

    July 17, 2021 at 8:41 pm #628100
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    Yes, whenever there is a bonus issue we need to adjust the share in issue prior to this date by the bonus fraction.

    Thanks

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