Below are extracts from the financial statements of Bovine for the year to 3 1 March 2
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Question:
Below are extracts from the financial statements of Bovine for the year to March
:
Income Statement
Continuing
Operations
$
Discontinuing
Operations
$
Total
$
Profit loss before tax
Tax charge relief
Profit from the ordinary activities
Extraordinary item as part of
continuing operations net of tax
relief of $
AF Intermediate Financial Accounting I Tutorials
Balance Sheet:
Ordinary Shares of cents each
Nonredeemable preference shares
Convertible preference shares $ each
NonCurrent Liabilities
Convertible loan stock
Notes:
All shares and loan stocks were in issue prior to the beginning of the current
accounting year.
The convertible preference shares are convertible to ordinary shares on the
basis of three ordinary shares for every five preference shares on March at
the option of the preference shareholders.
The convertible loan stock is redeemable on March or can be converted
to ordinary shares on the basis of ordinary shares for each $ of loan stock at
the holder's option.
There are also in issue directors' share options for four million ordinary shares.
These were issued on March and are exercisable on March at a
price of $ per share.
The market price of Bovine's shares can be taken as $ each.
Preference dividends are paid out of taxed profits. Interest on loan stock is an
allowable tax reduction. The rate of income tax is
Required:
a Calculate Bovine's basic and diluted earnings per share for the year
ended March
Posted Date: