Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › EPS kit
- This topic has 1 reply, 2 voices, and was last updated 6 years ago by MikeLittle.
- AuthorPosts
- November 21, 2017 at 2:28 pm #417158
Dorabella has the following capital and reserves on the 1 April 2001
$000
Share capital $1 O.share 7,000
Share premium 900
Rev. Reserves 500
R. E. 9,000
Total shareholder’s funds= 17,400Dorabella makes a bonus issue, of one share for every seven held , on 31 August 2002.
Dorabella Plc results are as follows :
Profit after tax 2003 : $1,150,000 and 2002 $ 750,000Calculate EPS for the year ending 31 March 2003 , together with the comparative EPS for 2002 that would be presented in the 2003 accounts .
Answer : EPS for 2012 is 750,000/8,000,000= $ 0.094
EPS for 2003 is 1,150,000/8,000,000 = $0.144
Again my question is how do they arrive at the number of shares used in EPS calculation for both years 7,000,000 + 1,000,000November 21, 2017 at 3:01 pm #417171The bottom half of page 117 in the course notes deals with this issue of bonus shares together with the example Larissa on page 118
Both of your problems about 7 million and 1 million shares should be clearer when you have re-worked the Larissa example
OK?
- AuthorPosts
- The topic ‘EPS kit’ is closed to new replies.