In this simulation, you are asked to address questions related to the accounting for share options and earnings per share computations. Prepare responses to all parts.

On the basis of the information above do you agree with the controller’s computation of earnings per share for the year? If you disagree, prepare a revised computation of earnings per share.
Financial Statements
Assume the same facts as those presented above, except that options had been issued to purchase 140,000 ordinary shares at $10 per share. These options were outstanding at the beginning of the year and none had been exercised or canceled during the year. The average market price of the ordinary shares during the year was $25, and the ending market price was $35.
What earnings per share amounts will bereported?

  • CreatedJune 17, 2013
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