Question: Use the same information as in P17 13 but also assume

Use the same information as in P17-13, but also assume the following.
1. On September 30, 200,000 convertible preferred shares were redeemed. If they had been converted, these shares would have resulted in an additional 100,000 common shares being issued. The shares carried a dividend rate of $3 per share to be paid on September 30. No conversions have ever occurred.
2. There are 10,000 $1,000, 5% convertible bonds outstanding with a conversion rate of three common shares for each bond starting January 1, 2012. Beginning January 1, 2015, the conversion rate is six common shares for each bond; and beginning January 1, 2019, it is nine common shares for each bond. The tax rate is 40%.
(a) Calculate the required EPS numbers under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security.
(b) Show the required presentations on the face of the income statement.

Sale on SolutionInn
  • CreatedAugust 23, 2015
  • Files Included
Post your question