IAS 33 CONTACT SESSION (25 MARKS) (37.

5 MINUTES)

A Ltd is a trading company that was badly impacted by the lock-down in 2020 due to the
Covid 19outbreak. The following extract from A Ltd’s financial statements at 31 March 2021
and related information is presented to you to assist you in calculating and presenting the
earnings per share of the company:

Extract from the Statement of Changes in Equity for the year ended 31 March 2021
R
Retainedearnings

Balance at 1 April 2019 519 636

Changes in equity for 2020
Profit for the year 220 364
Total comprehensive income
Balance at 1 April 2020 740 000
Changes in equity for 2021
Profit for the year 270 000
Total comprehensive income
Balance at 1 April 2021 846 000

ADDITIONAL INFORMATION:

1. The issued share capital of A Ltd consisted of the following on 1 April 2019:
100 000 Ordinary shares R8 000 000
10 000 6% Non-redeemable cumulative preference shares R1 000 000
50 000 5% Redeemable cumulative preference shares R500 000

The 5% redeemable cumulative preference shares are redeemable at 31 March 2023 at

the option of the holders.

2. The dividends that were paid in the reporting period ended 31 March 2021
consisted of thefollowing:

Ordinary dividend (15/6/2020) R44 000

6% preference dividend (31/3/2021) R120 000
5% preference dividend (31/3/2021) R25 000

3. The following share transactions took place in the two reporting periods under
review:
• On 1 October 2019 the company issued 10 000 ordinary shares at R85 each.
• On 31 July 2020 the company made a capitalization issue of one share
for every eleven shares to all ordinary shareholders registered on 30 June
2020.
• On April 1, 2019 issued 150 000 shares against cash at full market price.
• On March 30 , 2020 Company made a bonus issue of 1 for 5.
• On November 1 2019 made a right issue of 50 000 at an exercise price of
Rs. 18 per share when market price was Rs. 24 per share.
• On March 2020 the company issued 20 000 ordinary shares

REQUIRED:
Present and disclose the earnings and dividends per share for 2021 and 2020 in terms of
IAS 33 Earnings per share. (25) Show calculations clearly as it counts marks.