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 … Read the rest
EARNING PER SHARE IAS 33
IAS 33: Earnings Per Share (EPS) requires listed entities to disclose basic earnings per share as well as diluted earnings per share. In calculating diluted earnings per share, any financial instrument which potentially dilutes earnings per share should be taken into account.
The importance of disclosing diluted Earnings Per Share (DEPS.
Many entities issue financial instruments that allow the holder … Read the rest
The following are the list of updated international accounting standards (IAS) in 2020:
- IAS 1 – Presentation of financial statements.
- IAS 2 – Inventories.
- IAS 7 – Statement of cash flows.
- IAS 8 – Accounting policies, changes in accounting estimates and errors.
- IAS 10 – Events after the reporting period.
- IAS 12 – Income taxes.
- IAS 16 – Property,
i) The issued share capital of Mbeya Trust, a publicly listed company on the Dar es Salaam Stock Exchange, on 31st March 2013 was TZS 10 million. Its shares are denominated at TZS 25 each. Mbeya Trust’s earnings attributable to its ordinary shareholders for the year ended 31st March 2013 were also TZS10 million, given an earnings per share of … Read the rest
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability. Despite the number of advantages related to earning per share reporting there are several limitations associated with earning per share reporting.
The following are limitation… Read the rest
Accounting ratio are used to measure the efficiency and profitability of the company based on its financial reports. They provide a way of expressing relationship between one accounting data point to another, and are the basis of ratio analysis.
The following are limitation of accounting ratios in appraising financial performance:
- Inconsistent definition of ratios