ACCA FR Chapter 19 Earnings per share (IAS 33) Questions
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could you help me to calculate the last one? i think the answer is the last one?
Date Particulars Shares Total Bonus Fraction Period WANES
01-03-2015 Bonus 30,000,000 30,000,000 7/5 2/12 70,00,000
31-07-2015 Fresh Issues 10,000,000 42,000,000 5/12 1,75,00,000
31-12-2015 Closing 52,000,000 52,000,000 – 5/12 2,16,66,667
Total WANS 4,61,66,667
NUMBER OF SHARES HAS TO BE DONE IN REVERSE METHOD I.E FROM 31-12-2015 (TO) 1-3-2015
I never knew we had to use a bonus fraction, in the lecture did it not say to assume shares were already in issue ?
How did they get 30 million shares in question 3?
why are we multiplying the 30 million with 7/5?
in the first place how did they get 30 million?
That 7/5 is bonus fraction … i.e. (2+5=7, there FRACTION IS 7/5)
It was gotten from 42million × 5/7 = 30million.
This is because there was 42million shares in issue after a 2 for 5 bonus issue on 1st of March, which then brought about the 30million.
Remember Mr Chris stated in his lecture under bonus issue in example 1c that an increased no. of shared on the bottom is gonna reduce the overall EPS which is why we have a deduction of 30million.
Try studying the question again, I believe you will understand it.
Thanks
Where has 384 come from??
336*1/7=48
336+48=384
The real question is why did they do 63*4????
Number of shares is 63m * 25cents
25cents is o.25 which is a quarter
Hi,
Found the answer to my question in my notes – With rights issue, for bonus element, assume they have always been in issue and thereforre adjust comparative.
Thanks for the great videos.
Seun
My question is for the question that asks “What is the earnings per share figure for the year ended 30 April, 2015?”
Thanks,
Seun
Hi,
In the answer explanation, why is it “336 x 5/12 x 52/50”. Shouldn’t the 52/50 component be for “384 x 7/12”, which refers to the rights issue?
The 52/50 is for the right issue so why is it being calculated with the bonus issue component?
Thanks,
Seun