CIMAPRA19-F02-1 Exam - Topic 1 Question 92 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 92
Topic #: 1

XYZ had 600,000 ordinary shares in issue on 1 July 20X4. On 1 January 20X5, the entity made a 1 for 2 bonus issue. The profit attributable to ordinary shareholders for the year ended 30 June 20X5 was $2,925,000.

What is the basic earnings per share for the year ended 30 June 20X5?

A$3.25

B$4.88

C$1.63

D$3.90

Show Suggested Answer

Suggested Answer: A

by Annice at Jul 10, 2024, 03:35 AM

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Sylvia

9 months ago

Totally agree, the math looks solid to me!

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Verlene

10 months ago

Wait, how can EPS be that high? Seems too good to be true.

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Krystina

10 months ago

I think the EPS calculation is off.

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Brandon

10 months ago

So, after the 1 for 2 bonus, that’s 900,000 shares now!

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Pansy

10 months ago

There were 600,000 shares before the bonus issue.

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Eliz

10 months ago

I'm a bit lost on how to handle the bonus issue. Does it mean we just add shares or do something else?

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Delbert

11 months ago

I practiced a similar question last week, and I think the formula is profit divided by the number of shares. Just need to be careful with the adjustments.

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Chanel

11 months ago

I think we need to adjust the number of shares after the bonus issue, which was a 1 for 2. So, that means the total shares will be 900,000, right?

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Dudley

11 months ago

I remember we calculated earnings per share in class, but I'm not sure how the bonus issue affects the share count.

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Joanna

11 months ago

No problem, I've done plenty of these before. The key is remembering to adjust the number of shares for the bonus issue.

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Mignon

11 months ago

Hmm, I'm a bit confused about how to handle the bonus issue. I'll need to review the accounting standards on that.

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Stephaine

11 months ago

Okay, I think I've got this. I just need to calculate the weighted average number of shares and then divide the profit by that.

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Izetta

11 months ago

This looks like a straightforward earnings per share calculation, but I'll need to think through the impact of the bonus issue.

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Malcom

11 months ago

Hmm, I'm a bit unsure about this one. I know we need to set up the remoting connection, but I'm not sure if I should be adding the computers to a group or configuring some Active Directory settings. I'll have to think this through carefully.

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Carey

11 months ago

I'm kind of confused; could it also relate to internet access? I feel like all the options are mixing up in my head.

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Nelida

11 months ago

Okay, let me think this through. I'm guessing the "discard-unknown" feature might help, as it could prevent the DPI device from causing issues with unknown MAC addresses. But I'm not confident that's the right answer.

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Otis

11 months ago

I'm a bit confused on where to look for the Access-Reject records. The question mentions the Access Tracker, but the options talk about the Event Viewer and other areas. I'll need to double-check the CPPM documentation.

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Brittney

1 year ago

I'm going to go with D) $3.90 on this one. It just feels right, you know? Plus, I'm feeling lucky today.

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Avery

1 year ago

Easy peasy! The bonus issue doubled the number of shares, so the earnings per share should be half of what it was before. That means the answer is C) $1.63.

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Luis

1 year ago

Hmm, this is tricky. I remember learning about bonus issues in my accounting class, but I can't quite remember how they affect EPS. I'll have to think about this one a bit more.

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Lilli

1 year ago

C) $1.63

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Ayesha

1 year ago

B) $4.88

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Adell

1 year ago

I think the bonus issue might affect the number of shares outstanding, which would impact the EPS calculation.

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Leigha

1 year ago

B) $4.88

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Viola

1 year ago

A) $3.25

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Alease

1 year ago

A) $3.25

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Marleen

1 year ago

I'm not sure about this one. The question mentions a bonus issue, which means the number of shares increased, but the profit stayed the same. I'm going to go with C) $1.63.

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Buck

1 year ago

I agree, the bonus issue doesn't affect the profit, so it should be A) $3.25.

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Luis

1 year ago

I think the answer is A) $3.25.

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Elly

1 year ago

Okay, let's think this through step-by-step. If the shares doubled after the bonus issue, then the earnings should have doubled as well. That means the correct answer is B) $4.88.

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