Assume that a company had the following Expected and incurred losses on loans and advances for 2018
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Question:
Assume that a company had the following Expected and incurred losses on loans and advances for 2018 and 2019.
2019 | 2018 | |
Expected loss on loans and advances | 15,000 | 12,000 |
incurred loss on loans and advances | 5,000 | 4,000 |
Included in the impairment charge of K29, 047 for 2019 and impair relief of K16, 876 for 2018 is the impairment amount based on the application of IAS 39 and not IFRS 9.
a) Basing on IFRS 9 guidelines, explain how impairment charge should be recorded and show the adjusting journal entry if any
Group | Bank | ||
2019 | 2019 | 2018 | |
Profit attributed to equity holders | 200,056 | 214,654 | 183,733 |
Weighted number of ordinary shares in issue (thousands) | 1,443,750 | 1,443,750 | 1,443,750 |
Basic and diluted earnings per share (Kwacha) | 0.139 | 0.149 | 0.127 |
b) Show the effect of the adjustment in (a) on the basic and diluted earnings per share 2018 and 2019, if Company's weighted average number of ordinary shares for 2018 and 2019 is 1,443,750. And the tax rate is 35 %.
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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