Based on MFRS 5: Non-current assets held for sale and discontinued operation, discuss the accounting for:

• Purchased of subsidiary company bought to be sold,

• Subsidiary company which 25% of its operations discontinued during the current financial year
• Non-current asset classified as held for sale but the sale did not take place after the fourteenth month.

(6 Marks)

1. On 30 September 2014, Pelangi Berhad, a listed company had 8 million ordinary shares amounted to RM4 million. Two months later, on 1 December 2014, Pelangi Berhad consolidated two existing shares into one share.

On 31 March 2015, the company issued 2 million ordinary shares at a price of RM2 per share.

On 30 September 2015, the company make a right issue of 1 share for evey 5 outstanding shares. The last exercise date for right issue was on 1 May 2016 and the exercise price would be RM3.50 per share.

After that, on 1 January 2016, Pelangi Berhad issued fully paid up 500,000 convertible preference shares at RM4 per share. On 30 September 2017, 100,000 preference shares were converted into ordinary shares at a rate of 1 preference share for 3 ordinary shares.

On 1 November 2017, the company purchased back 300,000 of its issued ordinary shares at a price of RM4.50 each.

The profit after tax attributable to shareholders of Pelangi Berhad was RM4.1 million, RM4.3 million, RM4.7 million and RM5.2 million for financial year ended 30 September 2014, 2015, 2016 and 2017 respectively.

The corporate tax rate is 24%.

Required:

Based on MFRS 133: Earnings per share calculate the earnings per share for Pelangi Berhad as at 30 September 2014, 2015, 2016 and 2017.

(15 Marks)