A listed entity, had 3,000,000 $1 ordinary shares in issue, On 1 January 2009 CSA.CSA made a bonus issue of 1 for 3, On 1 May 2009.
CSA issued 2,000,000 $1 ordinary shares for $3.20 each, on 1 September 2009. For the year ended 31 December 2009 The profit before tax of CSA was $1,040,000. For the year Income tax expense was $270,000.

The essential earnings per share for the year ended 31 December 2008 was 15.4 cents.

On 1 November 2009 CSA issued changeable loan stock. Suppose the conversion was fully subscribed there would be enhance of 2,400,000 ordinary shares in issue. The effective interest rate is 7% and the liability element of the loan stock is $4,000,000.
CSA is subject to income tax at a rate of 30%.

Required:

(a) Measure the basic earnings per share to be reported in the monetary statements of CSA for the year ended 31 December 2009, including comparative, in agreement with the requirements of IAS 33 Earnings per Share.

(b) Calculate the moderate earnings per share for the year ended 31 December 2009, non-conflicted with the requirements of IAS 33 Earnings Per Share.

(c) Explain in brief why the bonus issue and issue at full market value are treated in a different way in arriving at basic earnings per share.