Q8. Z plc has on issue 2 million ordinary shares and 1 million convertible preference shares of 0.50 each. The holders of the preference shares have the right to convert into ordinary shares at the rate of two preference shares for one ordinary share at a future date. The following figures have been extracted from the statement of comprehensive income of Z plc for the year ending 30 June 2021: Profit after income tax Dividends: - Ordinary - Preference 290 000 (160 000) (20 000) Increase in retained earnings 110 000 What would be the diluted earnings per share for Z plc for the year ending 30 June 2021? A. 0.145 B. 0.135 C. 0.108 D. 0.116 [1 mark] Q9. Through 50 years of high quality service, Pure Science Lab has created goodwill with its clients that management estimates is worth at least 20,000,000. Under IAS 38 Intangibles Assets, how should this be recognized? A. It should not be recognized in Pure Science's accounting records at all. B. An intangible asset "Goodwill" should be debited for 20,000,000. C. The 20,000,000 should be expensed over a period of 20 years. D. The 20,000,000 should be expensed over a period of 50 years. [1 mark] Q10. Which of the following statements is not in accordance with IAS 1 Presentation of Financial Statements with respect to the statement of comprehensive income? A. All items of income and expense recognised in a period are to be presented in a single statement of comprehensive income. B. All items of income and expense recognised in a period are permitted to be presented in two statements: 1) a separate statement of profit and loss and 2) a statement beginning with profit or loss and displaying components of other comprehensive income. C. An entity shall present an analysis of expenses in profit or loss using a classification based on either the nature of expenses or their function within the entity, whichever provides information that is reliable and more relevant. D. Components of other comprehensive income include gain on sale of property plant and equipment [1 mark] [Total: 10 marks]