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zumrudaliyeva.
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- April 29, 2025 at 8:13 am #717047
Dear Sir, in the below-mentioned question I calculated weighted average of shares by calculating both the year fraction and bonus fraction which gives me 1150000/8666667= 13.3. But in the answer, I see that they just divided the profit after tax, 1150000 by the total number of shares in the amount of 8m. So, they got different answer from mine. 13.3 vs 14.4
The question:
Dorabella had the following capital and reserves on 1 April 20X1:
$000
Share capital ($1 ordinary shares) 7,000
Share premium 900
Revaluation surplus 500
Retained earnings 9,000
––––––
Shareholders’ funds 17,400
––––––
Dorabella makes a bonus issue of one share for every seven held, on
31 August 20X2.Dorabella’s results are as follows: 20X3 20X2
$000 $000
Profit after tax 1,150 750Calculate EPS for the year ending 31 March 20X3, together with
the comparative EPS for 20X2 that would be presented in the 20X3
accounts. - AuthorPosts
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