Zappa is a mining company listed in Australia with a number of subsidiaries. Extracts from the consolidated statement of profit or loss and other comprehensive income of Zappa for the year ended 30 June 2020 appear below: Attributable Non-controlling Total to Zappa interest $'000 $'000 $'000 Profit for the year 39,000 3,000 42,000 Other comprehensive income 5,000 Nil 5,000 Total comprehensive income 44,000 3,000 47,000 ii. Additional information of Zappa comprises: i. 200 000 000 ordinary shares in issue at the beginning of financial year - 1/7/2019. On 1 April 2020, Zappa issued further 50 000 000 new ordinary shares at full market value. 80 000 000 preference shares. These shares were in issue for the whole of financial year ended 30 June 2020. The dividend on these preference shares is discretionary. iii. S180 000 000 in convertible debentures issued on 1 July 2018 and repayable on 30 June 2023. Interest is payable annually in arrears and the interest rate is 10%. These debentures could be converted to 100 000 000 ordinary shares at the option of the debenture holders. In the year ended 30 June 2020, Zappa declared an ordinary share dividend of 10 cents per share and a dividend of 5 cents per share on the preference shares. The corporation tax for Zappa and its subsidiaries is 30%. All transactions have been correctly accounted for in the financial statements of Zappa for the year ended 30 June 2020. Required: a) Explain the meaning of the term "potential ordinary shares' and provide TWO examples of potential ordinary shares OTHER THAN convertible loans. (3 marks) b) Explain how the diluted carings per share is calculated and when it needs to be disclosed. (3 marks) c) Compute the basic and diluted earnings per share amounts for Zappa for the year ended 30 June 2020 which will be presented in its consolidated financial statements for that year. (10 marks) Tyne here to our Zappa is a mining company listed in Australia with a number of subsidiaries. Extracts from the consolidated statement of profit or loss and other comprehensive income of Zappa for the year ended 30 June 2020 appear below: Attributable Non-controlling Total to Zappa interest $'000 $'000 $'000 Profit for the year 39,000 3,000 42,000 Other comprehensive income 5,000 Nil 5,000 Total comprehensive income 44,000 3,000 47,000 ii. Additional information of Zappa comprises: i. 200 000 000 ordinary shares in issue at the beginning of financial year - 1/7/2019. On 1 April 2020, Zappa issued further 50 000 000 new ordinary shares at full market value. 80 000 000 preference shares. These shares were in issue for the whole of financial year ended 30 June 2020. The dividend on these preference shares is discretionary. iii. S180 000 000 in convertible debentures issued on 1 July 2018 and repayable on 30 June 2023. Interest is payable annually in arrears and the interest rate is 10%. These debentures could be converted to 100 000 000 ordinary shares at the option of the debenture holders. In the year ended 30 June 2020, Zappa declared an ordinary share dividend of 10 cents per share and a dividend of 5 cents per share on the preference shares. The corporation tax for Zappa and its subsidiaries is 30%. All transactions have been correctly accounted for in the financial statements of Zappa for the year ended 30 June 2020. Required: a) Explain the meaning of the term "potential ordinary shares' and provide TWO examples of potential ordinary shares OTHER THAN convertible loans. (3 marks) b) Explain how the diluted carings per share is calculated and when it needs to be disclosed. (3 marks) c) Compute the basic and diluted earnings per share amounts for Zappa for the year ended 30 June 2020 which will be presented in its consolidated financial statements for that year. (10 marks) Tyne here to our