會計 討論 Convertible Debt. 指導老師 : 洪聖閔. 蔡 蕎羽 01152235 林怡君 01152229 林心韻 01152227 郭元庭 01152259 郭振國 01152241. CA16-6 (EPS Concepts and Effect of Transactions on EPS)
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(EPS Concepts and Effect of Transactions on EPS)
Chorkina Corporation , a new audit client of yours , has notreported earnings per share data in its annual reports to shareholders in the past.
The treasurer, Beth Botsford, requested hat you furnish information about the reporting of earnings per share data in the current year’s annual report in accordance with IFRS.
(a)Define the term ”earnings per share” as it applies to a corporation with a capitalization structure composed of only one class of ordinary shares. Explain how earnings per share should be computed and how the information should be disclosed in the corporation’s financial statement.
Net income - preference dividends
Weight-Average share outstanding
(1.)Outstanding preference shares issued at a premium with a par value liquidation right.
(b)2.The exercise at a price below market value but above book value of an ordinary share option issued during the current fiscal year to officers of the corporation.
The replacement of a machine immediately prior to the close of the current year at a cost 20% above the original cost of the replaced machine. The new machine will perform the same function as the old machine that was sold for its book value.
(4.) The declaration of current dividends on cumulative preference shares.
(5)The acquisition of some of the corporation’s outstanding ordinary shares during the current fiscal year. The shares were classified as treasury shares.
(6)A 2-for-1 share split of ordinary shares during the current fiscal year
(7) A provision (準備金)created out of retained earnings for a contingent liability（或有負債）from a possible lawsuit（訴訟）.