1a) Pettans Ltd is a public-listed company. As at 1 January2019, the company has an issued share capital of 3,000,000 ordinary shares. On 1 March 2019, Pettans Ltd announced a 1 for 5 bonus issues and on 1 October, Pettans Ltd issued additional 500,000 ordinary shares as its full market price.

Required

i) Calculate the number of shares to be used in the calculation of restated basic EPS for the year to 31 December 2019.

ii) Calculate the weighted average number of ordinary shares to be used in the calculation of basic EPS for the year to 31 December 2020

iii) IAS33(earnings per share), applies to companies whose ordinary shares are publicly traded. Explain the importance attached to earnings per share(EPS)

iv) Briefly discuss how basic EPS differ from diluted EPS

b) Corban Companys profit after tax for the year to 30 June 2020 was $4million. The comparative figure for the year to 30 June 2019 was $3.5 million The companys issued share capital at 1 July 2018 consisted of 3 million ordinary shares of $2 each. On 1 October 2019, the company issued an additional 1 million ordinary shares and the company bought back 100,000 shares on 1 March 2020 at its full market price.

Required:

Calculate the basic EPS for the two years 30 June 2019 and 30 June 2020