Gold Ltd is a publicly listed company and has to provide earnings per share information in accordance
Question:
Gold Ltd is a publicly listed company and has to provide earnings per share information in accordance with IAS 33 Earnings per Share. The following information relates to the change in ordinary shares during the current reporting year ended 31 December 20x2.
On 1 April 20x2, Gold Ltd issued 4,000,000 convertible preference shares. There were no conversions from preference to ordinary shares during 20x2. The issue agreement permits the preference shareholders to convert each preference share to one ordinary share. After the bonus issue, each unit of preference share is convertible to two ordinary shares. Under the issue agreement, Gold Ltd has to pay cumulative tax-exempt preference share dividends at 1.5% per share per quarter.
Required
1. Determine Gold’s basic earnings per share for the year ended 31 December 20x2.
2. Determine Gold’s diluted earnings per share for the year ended 31 December 20x2.
Step by Step Answer:
Advanced Financial Accounting An IFRS Standards Approach
ISBN: 9781285428765
4th Edition
Authors: Pearl Tan, Chu Yeong Lim, Ee Wen Kuah