- 7 Marks
CR – Apr 2022 – L3 – Q2c – Earnings Per Share
Calculate and restate earnings per share (EPS) for the current and previous year, factoring in rights and bonus issues under IAS 33.
Question
On 1 January 2020, Kalimba Ltd had 2 million ordinary shares in issue. On 30 April 2020, the company issued 270,000 ordinary shares at full market price. On 31 July 2020, the company made a rights issue of 1 for 10 at GH¢2. The fair value of the shares on the last day before the rights issue was GH¢3.10. On 30 September 2020, the company made a 1 for 20 bonus issue. Profit for the period was GH¢400,000. The reported earnings per share for the year ended 31 December 2019 was GH¢0.186.
Required:
Calculate the earnings per share (EPS) for the year ended 31 December 2020, and the restated EPS for the year ended 31 December 2019, in accordance with relevant International Financial Reporting Standards (IFRS).
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