• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

EPS calculation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › EPS calculation

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 29, 2021 at 1:37 am #639349
    Nikitagarwal
    Participant
    • Topics: 154
    • Replies: 147
    • ☆☆☆

    Hi Sir,
    Hope you are well!
    On 31 December 20X1, the issued share capital consisted of 4,000,000
    ordinary shares of 25¢ each. On 1 July 20X2 the entity made a rights
    issue in the proportion of 1 for 4 at 50¢ per share and the shares were
    quoted immediately before the issue at $1. Its trading results for the last
    two years were as follows:
    Year ended 31 December
    20X2 20X1
    $ $
    Profit after tax 425,000 320,000
    Show the calculation of basic EPS to be presented in the financial
    statements for the year ended 31 December 20X2 (including
    comparative).

    I was calculating the weighted average no. of shares .. however I am not understanding the below calculation performed:
    Step 3 – Weighted average number of shares
    No.

    Bonus
    fraction Time

    Weighted

    average
    1 January b/f 4,000,000 1/0.9 6/12 2,222,222
    1 for 4 rights 1,000,000
    ––––––––
    1 July b/f 5,000,000 6/12 2,500,000
    –––––––– ––––––––
    4,722,222
    ––––––––

    Why B/f figures are 6/12 ? and instead right issue figures should have been instead.

    October 30, 2021 at 9:55 am #639461
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7171
    • ☆☆☆☆☆

    I’m well, thank you. The opening 4,000,000 were in issue for 6 months and so we need to multiply by the 6/12, with the 5,000,000 being in issue for the following 6 months so also multiplied by the 6/12. This is helping with the weighting calculation.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • Hsaini on Accounting for Management – ACCA Management Accounting (MA)
  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • John Moffat on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in