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Chapter 19 Practice Q1(EPS)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Chapter 19 Practice Q1(EPS)

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  • January 12, 2022 at 7:58 pm #645785
    alawi sayed
    Participant
    • Topics: 154
    • Replies: 168
    • ☆☆☆

    Hello Mr Chris,

    For chapter 19 practice Q1 ,why in the answer we straightly went to the rights issue but what about the period from 1 May 2014 to 15 Aug 2014 shouldn’t it be included in the weighted average shares or it is already taken care .

    Thanks,

    January 14, 2022 at 10:38 am #646022
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6473
    • ☆☆☆☆☆

    Hi,

    It is taken care of in the bonus issue adjustment where we assume that the bonus issue has always been in place. So, there were 336 shares actually in issue at the start of the year but we adjust this for the bonus fraction and then we look towards the rights issue and the adjustments required there (pro-rating and fraction).

    Thanks

    January 14, 2022 at 12:30 pm #646030
    alawi sayed
    Participant
    • Topics: 154
    • Replies: 168
    • ☆☆☆

    Thanks,

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