- 5 Marks
FR – Dec 2022 – L2 – Q5c – Calculation of EPS for the Year Ended December 31, 2021
This question requires the calculation of EPS for the year 2021, and restating the EPS for the year 2020 using a rights issue adjustment.
Question
On January 1, 2021, Bayor Ltd had 10 million ordinary shares in issue. On 31 March 2021, the company issued at full market price, 2 million ordinary shares. On 31 August 2021, the company made a rights issue of 1 for 5 at GH¢3. The fair value of the shares on the last day before the rights issue was GH¢3.80. Profit for the current period is GH¢3.5 million. The reported Earnings Per Share (EPS) for the year ended December 31, 2020 was 0.33p.
Required: Calculate the EPS for the year ended December 31, 2021, and the restated EPS for the year ended December 31, 2020.
Find Related Questions by Tags, levels, etc.
- Tags: Earnings Per Share, Financial Reporting, IFRS 33, Share Capital
- Level: Level 2
- Topic: Financial Reporting Standards and Their Applications
- Series: DEC 2022
Report an error