Reference no: EM132778521

Alam Suria Bhd is a listed company operated in Selangor. The entity's financial year ends on 31 December each year. The following data was extracted from the entity's books.

1. On 1 January 2015, the issued share capital consisted of 30,000,000 ordinary shares of RM0.50 each and 500,000 preference shares of RM1 each.

2. RM500,000 10% convertible debentures were issued on 1 January 2015 and are convertible into ordinary shares on the basis of 75 shares per RM50 debentures.

3. A right issue of one ordinary share for every three held was made on 1 April 2015 at RM0.90. The market price of each share prior to the issue was RM1.10.

4. 20% of the debentures were converted on 30 June 2015.

5. Profit after tax for the year amounted to RM36,250,000.

6. The entity declared preference dividend amounted to RM500,000.

7. Tax rate for 2015 is at 25%.

8. Basic earnings per share for the year ended 31 December 2014 was 0.89 sen.

Required:

Problem a. Calculate the basic earnings per share (EPS) for the year ended 31 December 2015. Restate previous year's EPS where necessary.

Problem b. Calculate the diluted earnings per share (DEPS) for the year ended 31 December 2015.

Problem c. Advice Alam Suria Bhd on the presentation of basic and diluted earnings per share in the statement of profit or loss and other comprehensive income