Revision question on IAS 33 earning per share (basic and diluted)

ii) On 1st April 2015 Bongo Trust issued Tsh 20 million 8% convertible loan stock at par. The terms of the conversion (on 1st April 2018) are that for every Tsh 100 of loan stock, 50 ordinary shares will be issued at the option of loan stockholders. Alternatively, the loan stock will be redeemed at par for cash. Also, on 1st April 2015 the directors of Bongo Trust were awarded share options on 12 million ordinary shares exercisable from 1st April 2018 at Tsh 1.50 per share. The average market value of Bongo Trust’s ordinary shares for the year ended 31st  March 2015 was Tsh 2.50 each. The income tax rate is 25%. Earnings attributable to ordinary shareholders for the year ended 31st  March 2015 were Tsh 25,200,000. The share options have been correctly recorded in the statement of profit or loss.


Calculate Bongo Trust’s basic and diluted earnings per share for the year ended 31st March 2015 (comparative figures are not required).

You may assume that both the convertible loan and the directors’ options are dilutive.                              

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