Question 7 On 1 January 20x0 Abzy Ltd. has 1,000,000 ordinary shares on issue. On 30 September 20x0 Abzy Ltd. issues 650,000 more shares. For the period ended 31 December 20x0 Abzy Ltd.'s profit attributable to ordinary shareholders amounts to MU5,750,000. What is the basic earnings per share for 31 December 20x0 and are prior periods affected by the additional issue? Basic earnings per share for 31 December 20x0 is MU3.87 (MU5,750,000 [1,000,000 + (650,000 12 x 9)]}. All prior periods presented must be adjusted proportionately for the 650,000 share issue. Basic earnings per share for 31 December 20x0 is MU6.3 calculated as follows {MU5,750,000 [(1,000,000 12 x 9) + (650,000 12 x 3)]}. The 650,000 share issue does NOT affect prior periods. Basic earnings per share for 31 December 20x0 is MU3.48 {MU5,750,000+ [1,000,000+ (650,000 12 x 12)]} and a retrospective proportionate adjustment must be made to earnings per share for prior periods. Basic earnings per share for 31 December 20x0 is MU4.95 which is calculated as follows (MU5,750,000 [1,000,000 + (650,000 12 x 3)]}. The 650,000 share issue does NOT affect prior periods