(a) The Dent group earned profits from continuing operations attributable to the parent company for the year ended 31 October 2011 of $13.6 million. Losses from discontinued operations attributable to the parent company were $4 million. The group has a complex capital structure. The following transactions and events relate to changes in Dent’s capital structure during the year ended 3 I October 2011:

• Ordinary shares. The number of ordinary shares outstanding at I November 2010 was 6 million. On I February 201 I I million ordinary shares were issued for cash.

• Convertible bonds. In 2009 10,000 $1,000 4% convertible bonds were issued for cash at par value. Each $ 1,000 bond is convertible into 35 ordinary shares. The entire issue was converted on I April 2011.

• Preference shares. On I November 2010, 100,000 non-convertible, non-redeemable cumulative preference shares classified as equity each with a par value of $100 were issued at $89 each. The shares are entitled to a cumulative annual dividend starting in two years’ time and equivalent to the market rate dividend yield at the time of issue of 6%. In 2008 Dent had issued I million 5% convertible preference shares. Each share is convertible into one ordinary share. 75% of these were converted into ordinary shares on I May 2011. Preference dividends are paid half-yearly in arrears.
• Warrants. On I November 2010 Dent issued warrants to purchase 2 million ordinary shares at $6 per share for an exercise period of three years. All warrants were exercised on I October 2011. The average market price of each warrant during the period to I October 201 I was $7.50.
Required:
Calculate the basic earnings per share figures for Dent for the year ended 31 October 201 I and show how the information would be presented in Dent’s financial statements.

(b) On I January 201 I Ram issued 100,000 ordinary shares for cash at $ 10 each. On 18 July 2011, Ram reacquired 10% of these shares for cash at a cost of $15 each. One month later the reacquired shares were all reissued for cash of $17 each. This type of transaction is new to the directors of Ram and they are unsure how they should be accounted for in the company’s financial statements.
Required:
Advise Ram on the appropriate accounting treatment of these transactions in the company’s financial statements.