Extracts from group financial statements of AB, a public limited company, year ended April 30, 2021. OMR (millions) Profit from continuing operations ​​​​​​35,000 Minority interest distributed​​​​​​​1,500 Preference dividend​​​​​​​​30 Share capital at April 30, 2021 Ordinary shares of OMR 1 ​​​​​​​1,000 5% Convertible preference shares ​​​​​​300 Other Information 1. The profits for the three months to April 30, 2021, are OMR1,200 million. 2. On May 11, 2021, there was a bonus issue of one for four ordinary shares. The financial statements are made up to April 30, 2021, and had not yet been published. 3. XY plc, a 100% owned subsidiary of AB, has in issue 9% convertible bonds of OMR200 million that can be converted into one ordinary share of AB for every OMR10 worth of bonds. Income tax is levied at 33%. Required Calculate basic and diluted earnings per share.

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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Extracts from group financial statements of AB, a public limited company, year ended April 30, 2021.

OMR (millions)

Profit from continuing operations ​​​​​​35,000

Minority interest distributed​​​​​​​1,500

Preference dividend​​​​​​​​30

Share capital at April 30, 2021

Ordinary shares of OMR 1 ​​​​​​​1,000

5% Convertible preference shares ​​​​​​300

Other Information

1. The profits for the three months to April 30, 2021, are OMR1,200 million.
2. On May 11, 2021, there was a bonus issue of one for four ordinary shares. The financial statements are made up to April 30, 2021, and had not yet been published.
3. XY plc, a 100% owned subsidiary of AB, has in issue 9% convertible bonds of OMR200 million that can be converted into one ordinary share of AB for every OMR10 worth of bonds. Income tax is levied at 33%.

Required

Calculate basic and diluted earnings per share.

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