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Sep/Dec 2018

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Sep/Dec 2018

Viewing 2 posts - 1 through 2 (of 2 total)
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  • March 14, 2019 at 11:44 am #509315
    toushiga
    Participant
    • Topics: 424
    • Replies: 171
    • ☆☆☆☆

    Hello Sir,,For PYQ Sep/Dec 2018 Q32(c)
    basic earning per share

    why the 1 NOv 2017 of number of shares is 13700 instead of 14700?
    as the question stated that “Duggan Co issued $5m 6% convertible loan notes on 1 July 20X7. Interest is payable annually in arrears. These
    bonds can be converted into one share for every $2 on 30 June 20X9.”

    $5m/ $2 = 2500 ,000 new shares?

    Thank you.

    March 17, 2019 at 8:12 pm #509566
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7212
    • ☆☆☆☆☆

    Hi,

    You only consider the shares that are physically in issue and so the convertibles have not yet given any newly issued shares, so we cannot include them in any of the calculations. We only include the 1.5 million extra that have been issued.

    Thanks

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