mpany had made a net profit attributable to ordinary sharehol

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 24E

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accenture company had made a net profit attributable to ordinary shareholders

of 2,000,000 for the year ended December 31,2019.
there are 100,000 ordinary shares outstanding during the entire year.

since January 2019 there had been 800,000 of 5% convertible loan in issue. the terms of conversion for every 10,000 nominal amount are:

June 30 2019 120 ordinary shares
June 30, 2020 150, ordinary shares
June 30,2021 140 ordinary shares

No conversion has taken place during the current year. the interest on the convertible loan is allowable for a tax relief of 30%.

REQUIRED:
1. basic earnings per share
2. diluted earnings per share

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