The following information relates to Hardin Limited’s year-ended 31 December 2020:  The statement of comprehensive income shows profit for the year of R154 000.  The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000)  Profit on sale of plant: R23 200 (before tax: R32 000)  Inventory write-down: R10 000 (before tax: R15 000)  The statement of changes in equity reflected preference dividends of R3 450.  12 000 shares in issue throughout the year.   Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020

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
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 5RE: Bloom Company had beginning unadjusted retained earnings of 400,000 in the current year. At the...
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The following information relates to Hardin Limited’s year-ended 31 December 2020:

 The statement of comprehensive income shows profit for the year of R154 000.

 The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000)

 Profit on sale of plant: R23 200 (before tax: R32 000)

 Inventory write-down: R10 000 (before tax: R15 000)

 The statement of changes in equity reflected preference dividends of R3 450.

 12 000 shares in issue throughout the year.

 

Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020

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