IAS 33: EARNINGS PER SHARE 3 (Right Issue of Shares) |ACCA ICAG CIB|

[@ronasacademy]

Join the learning family by subscribing and sharing with others. Still RONAS: Comprehending the Complications!

[@chiamakaconcilia3dorganics]

you are good🎉

[@beniceuaaka]

you are very good in explaining this. Thought that it was difficult but got it the 1st time !!!!!!

[@ronasacademy]

@@beniceuaaka Kindly share with others

[@clementowusu838]

Keep moving my boss

[@samuelagbeka6465]

Please Cash Flow Statement

[@ronasacademy]

@samuelagbeka6465 it will be uploaded soon

[@kennethatsu3271]

If there's a Right issue and Bonus issue should the right issue fraction and Bonus fraction be included in computing the weighted Average number of shares?? Are we going to have 2 different Bonus fractions or just one

[@ronasacademy]

The assumption under the bonus issue will be applied, that it is assumed to be issued from the beginning of the period. Therefore, only one bonus fraction (Right Issue) will be used. Thanks for the question.

[@kennethatsu3271]

​@@ronasacademy what I meant was that we have both Right issue and Bonus issue in the same question. So first there was an issue at full market price in April. Then in July there was a Right issue. Finally in September there was a Bonus issue. Now my question is that are you going to apply both Rights fraction and Bonus fraction together in computing the weighted Average number of shares?? The reason why I am asking is that when I use the cumulative method and that of the single method, I should arrive at the same weighted Average number of shares. Unfortunately that's not the case. So which fraction are you going to use??? A single fraction or two??

[@ronasacademy]

@@kennethatsu3271 Sorry if I misunderstood your earlier question, Sir. Well, I'm yet to come across such a situation. However, with my understanding of IAS 33, the following should salvage the issue, please. 1. Both bonus fractions under the right issue (Market Price before Right Issue / TERP) and Bonus issue should be determined and applied separately as follows: 2. The right issue bonus fraction will be applied to the full market issue till the right issue date. 3. The bonus issue will also be applied to the full market issue till the bonus shares issue date. 4. Note: The time fraction should be used in both computations. You can also kindly send the specific question for further deliberations via email at [e-mail] Thank you.