Financial Accounting 2B : earnings per share (IAS 33) INFORMATION: X LIMITED has a 31 December year-end. On 1 January 20X5, X Limited had the following issued share capital and debentures: - 1600000 Ordinary shares issued at R0.50 each; - 500000 Cumulative preference shares issued at R2 per share (with fixed annualdividend of 10c per share); and 30000010% Convertible debentures issued at R1.50 each. Additional information: 1. X Limited issued the following shares on 1 October 205 : - 50000 Ordinary shares for cash. The cash for these shares was receivable on the same day. - 200000 Cumulative redeemable preference shares at R2 per share (with a fixedannual dividend of 15c per share). The cash for these shares was receivable onthe same day. These preference shares are requity. 2. All the 10% convertible debentures in issue as at 1 January 205, were originally issued on 1 July 203. Assume that the necessary approvals were received for the convertible debenture issue. On 1 May 20X6, X Limited converted all the 3. On 1 June 20X6, X Limited issued 200000 ordinary shares for cash. The cash for these shares was receivable on 1 July 206. 4. On 1 November 20X6, X Limited issued capitalization shares on basis of 1 ordinary share for every 20 ordinary shares held. Assume that the necessary approvals were received for the capitalization issue. 5. Extract from the statement of profit or loss and other comprehensive income of X Limited for the years ended 31 December 206 and 31 December 205 : 6. Assume a corporate tax rate of 28%. Financial Accounting 2B : earnings per share (IAS 33) REQUIRED: (1) Calculate the following "per share" amounts that would be presented in the financial statements of X Limited for the year ended 31 December 20X6, in accordance with International Financial Reporting Standards (IFRS). a) Basic earnings per share (12) b) Diluted earnings per share (6) NOTE: - Comparative amounts are required. - The presentation of these amounts in the financial statements is not required. - Show all calculations and make use of cross-references. - All final amounts must be rounded off to the nearest cent (e.g. R5.21). (2) Prepare the "Earnings per share" note that would accompany the financial statements of X Limited for the year ended 31 December 206, in accordance with IAS 33. (8)