Question 24.6

The following information is available for Cousins Limited at 31 December 20X8:

20X8 20X7 20X6

C C C

Profit for the year 650 000 550 000 400 000

Issued Ordinary Shares ? ? 683 750

10 000 12% participating preference shares 200 000 200 000 200 000

75 000 7% convertable preference shares 225 000 225 000 0

Options N/A N/A N/A

40 000 10% convertible debentures 16 000 0 0

Additional information:

The ordinary shares were all issued at C1 each.

The 12% participating preference shares were all issued at C20 each.

The participating preference shares are non-redeemable and non-cumulative, and participate to the extent of C1 for every C11 paid to ordinary shareholders.

The 7% convertible preference shares were all issued at C3 each.

The convertible preference shares (recognised as a liability) are cumulative and convertible at the option of the preference shareholder into ordinary shares at a rate of three ordinary shares for every four convertible preference shares on 31 December 20X8.

The preference dividend was declared in 20X8 together with the 20X7 preference dividends (recognised as finance costs on the preference share liability).

Finance costs deducted in arriving at profit after tax amount to C15 750.

The 10% convertible debentures were all issued at C4 each.

These debentures are convertible on 28 February 20X9 at the option of the debenture holders into Cousins Limited ordinary shares at a rate of two ordinary shares for every seven debentures.

If not converted into ordinary shares they will be redeemed on 28 February 20X9.

On 31 March 20X7, 50 000 ordinary shares were issued.

On 1 May 20X7, 165 000 ordinary shares were issued in terms of a capitalisation of reserves.

The directors of Cousins Limited were offered 25 000 shares, contingently issuable upon Brothers Limited generating total revenue of C50 million over five years.

Cousins Limited's revenue for the year ended 31 December 20X8 was C30 million (20X7: C30 million).

On 1 January 20X8, options were issued offering the acquisition of 67 500 ordinary shares in Cousins Limited after 1 January 20X9 at a strike price of C4 per share.

The average market price of the shares during 20X8 was C9 per share.

On 30 September 20X8, Cousins Limited undertook a share buy-back of 200 000 ordinary shares at C5 per share.

There are no components of other comprehensive income.

Required:

Disclose earnings per share in the financial statements of Cousins Limited for the year ended 31 December 20X8 in accordance with International Financial Reporting Standards.