Reference no: EM13377476
The following information is provided by Sino Ltd:
For the year ended 30 June 2010 Sino Ltd earned profit of $8,000,000 which included a profit of $400,000 from a discontinued operation.
On 30 June 2010 Sino Ltd had the following shares and other financial instruments outstanding:
-Ordinary shares$5,000,000
Movement for year ordinary shares:
On issue 1 July 2009, 4,000,000 shares of $ 1 fully paid
Issued on 1 March 2010 2,000,000 shares of $1 paid to 0.60
Share buy back 1 June 2010 200,000 fully paid shares
-Preference shares : 3 million issue at $ 13,000,000
-Options to purchase 300,000 ordinary shares issued at a price of $ 3 each
-Unsecured notes : 1 million notes issued at $ 1each bearing interest at 10% per annum and convertible to ordinary shares on a 1-for-1 basis.
-The preference shares are convertible to ordinary shares on a 1-for-30 basis
-The annual preference dividend is $150,000
On 30June 2010 the ordinary shares are trading at $5.
The income tax rate is 30%.
Required:
1. Using the above information calculate basic earnings per share for the year ended 30 June 2010 as required by Accounting Standard AASB133
2. Using the above information calculate diluted earnings per share for the year ended 30 June 2010 as required by Accounting Standard AASB133.