Quinn plc is an importer and wholesaler of mobile phone accessories. At the $31$ December

$2018,$ the company$$s authorised share capital is $40,000,000,$ consisting of $25$ pence ordinary

shares. Quinn plc$$s issued ordinary share capital on $1$ January $2018$ was $15,000,000.$ On $31$

May $2018,$ the company capitalised reserves by issuing three bonus $25$ pence ordinary shares

for each $25$ pence ordinary share held.

Quinn plc$$s profit before tax for the year ended $31$ December $2018$ amounted to $12,500,000,$

and the income tax liability for $2018$ was estimated at $3,000,000.$

At $31$ December $2018,$ Quinn plc$$s share price was $750$ pence and the average share price

during the year was $350$ pence. Quinn plc has an effective rate of income tax of $25\%.$

Additional Information

$1.$ During the year ended $31$ December $2018,$ Quinn plc had $2,500,00018\%$ convertible

preference shares in issue. Each preference share may be converted into five $25$ pence

ordinary shares during the year ended $31$ December $2019.$

$2.$ In $2016,$ Quinn plc issued options that give the company$$s directors the right to subscribe

for $25$ pence ordinary shares between $2017$ and $2021$ at $150$ pence per ordinary share. At

$31$ December $2018,$ there were $8,000,000$ options still outstanding.

$3.$ On $1$ January $2018,$ Quinn plc had $20,000,00010\%$ convertible loan stock in issue. On $1$

September $2018,$ the loan stock was converted into $25$ pence ordinary shares on the basis

of $25$ ordinary shares for each $50$ of loan stock.

$4.$ Quinn plc reports its earnings per share in accordance with IAS $33$ Earnings Per Share.

Requirement

$($a$)$ Calculate the basic earnings per share figure to be reported in the financial statements

of Quinn plc for the year ended $31$ December $2018.11$ Marks

$($b$)$ Compute the diluted earnings per share of Quinn plc for the year ended $31$ December

$2018.$

$10$ Marks