The following is taken from a 5 year review in the annual report of Esperance:

A new chair of the audit committee seeks your advice. Write a report with your advice on the following issues:

Required 

A new chair of the audit committee seeks your advice. Write a report with your advice on the following issues:

1. There has been a suggestion by another director that to make the shares more marketable they should have a 2 for 1 share split. The audit committee chair is concerned what impact this will have on EPS. In particular, he is worried that it will impact the comparison if this year's EPS and prior years.

2. Using the data provided re-state EPS for a 2 for 1 share split.

3. The adjusted EPS is used for remuneration targets. The new chair is concerned that it does not comply with AASB 133.

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2020 2019 2018 2017 2016 Basic EPS (cents) 12.9 18.9 6.6 5.9 22.7 Adjusted EPS (cents) 23.4 21.4 17.0 19.7 20.0 Earnings 44,472 65,382 22,878 20,429 78,338 Adjusted profit 80,744 74,103 59,015 68,185 69,157 WANOS 344,744 345,936 346,636 346,254 345,101