Question1: C company has the following after-tax profits for its two most recent accounting periods:

RO000

Year ended 31st December 2016 330

Year ended 31st December 2017 341

On 1st January 2016, the company's issued share capital consisted of 600,000 ordinary shares. On 1 August 2017, the company made a 1 for 6 bonus issue.

Required:

(a) Calculate basic EPS for the year 2017.

(b) Calculate restated basic EPS for the year 2016 and explain why this restatement is necessary.

Question2:

A company's profit after tax for the year 31st December 2018 was RO 800,000. The comparative figure for the year 31st December 2017 was RO 500,000. The company's issued share capital at 1st January 2016 consisted of 200,000 ordinary shares. No shares were issued during the year 2017 but a 1 for 2 rights issue was made on 1st July 2018 at RO 0.600 per share and this was fully subscribed. The market value of the company's shares just before the rights issue was RO 1.500 per share.

Required :

a) Calculate basic EPS for the year 2018

b) Calculate the restated basic EPS for the year 2017.