Question Tag: Bonus issue

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FA – Nov 2012 – L1 – SA – Q2 – Financial Statements

Identifying a non-characteristic of a bonus issue.

Which of these is NOT a characteristic of bonus issue?

A. Increasing capital without diluting current shareholdings
B. Capitalising reserves, so that they cannot be paid as dividends
C. Not raising cash
D. Generating new shares
E. Could jeopardise payment of future dividend if profit declines

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FA – Nov 2012 – L1 – SA – Q2 – Financial Statements

Identifying a non-characteristic of a bonus issue.

Which of these is NOT a characteristic of bonus issue?

A. Increasing capital without diluting current shareholdings
B. Capitalising reserves, so that they cannot be paid as dividends
C. Not raising cash
D. Generating new shares
E. Could jeopardise payment of future dividend if profit declines

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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.

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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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.

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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AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

The following is a statement of retained earnings:

Required:
What is the tax implication, if any, on the above income statement?

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AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

The following is a statement of retained earnings:

Required:
What is the tax implication, if any, on the above income statement?

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FA – Nov 2012 – L1 – SA – Q2 – Financial Statements

Identifying a non-characteristic of a bonus issue.

Which of these is NOT a characteristic of bonus issue?

A. Increasing capital without diluting current shareholdings
B. Capitalising reserves, so that they cannot be paid as dividends
C. Not raising cash
D. Generating new shares
E. Could jeopardise payment of future dividend if profit declines

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FA – Nov 2012 – L1 – SA – Q2 – Financial Statements

Identifying a non-characteristic of a bonus issue.

Which of these is NOT a characteristic of bonus issue?

A. Increasing capital without diluting current shareholdings
B. Capitalising reserves, so that they cannot be paid as dividends
C. Not raising cash
D. Generating new shares
E. Could jeopardise payment of future dividend if profit declines

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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.

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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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.

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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AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

The following is a statement of retained earnings:

Required:
What is the tax implication, if any, on the above income statement?

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You're reporting an error for "AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax"

AT – Nov 2015 – L3 – Q4d – Business income – Corporate income tax

Discussing the tax implications of a bonus issue in the retained earnings of a company.

The following is a statement of retained earnings:

Required:
What is the tax implication, if any, on the above income statement?

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