• 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 >>

Earning per share

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Earning per share

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by ammar5295.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 25, 2015 at 4:37 pm #285235
    xinyi0711
    Member
    • Topics: 4
    • Replies: 16
    • ☆

    Hi, can you help me solve tis question?

    Acorn Co had the same 10 milion ordinary shares in issue on both 1April 20X1 and 31March 20X2.On 1April 20X1 the company issued 1,200,000 $1 units of 5% convertible loan stock.Each unit of stock is convertible into 4 ordinary shares on1April 20X9 at the option of the holder.The following is an extract from Acorn Co’s income statement for the year ended 31 March 20X2?

    Profit before interest and tax $980000
    Interest payable on
    5% convertible loan stock ($60000)
    Profit before tax. =$920000
    Income tax at 30% ($276000)
    Profit for the period. =$644000

    Calculate the diluted earnings per share for the year ended 31March 20×2.

    November 25, 2015 at 10:55 pm #285305
    ammar5295
    Member
    • Topics: 2
    • Replies: 12
    • ☆

    Diluted EPS = [$644,000 + $60,000 (1 – 0.3)] / [10,000,000 + 4,800,000*]
    = $686,000 / $14800000 = 4.63c

    *(1,200,000 / 1) x 4 = 4,800,000

    You can post your answer in Ask your tutor section so they can provide you with an answer. That’s my answer. I hope it helps.

  • 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

  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023
  • Jarzin on The Finance Function in the Digital Age – CIMA E1
  • dkessilfie on FM Chapter 1 Questions – Financial management objectives

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