Question 2

A)

ABC Ltd's basic earnings per share is $1.25 for the year ended 2012. The company has the following outstanding potential ordinary shares at the start of the year with the following information:

Average share price for ABC Ltd during the year is $1.80.

Which of the above potential ordinary shares is the most dilutive and least dilutive POS in accordance with AASB 133 Earnings per Share, respectively?

1. convertible notes, employee options
2. executive options, convertible notes
3. employee options, convertible notes
4. preference shares, executive options

B)

Which of the following statements is incorrect with regards to non-controlling interests in subsidiaries?

1. A non-controlling interest is defined as equity in a subsidiary not attributable, directly or indirectly, to a parent.
2. Under the entity concept, if subsidiaries are partly owned by the parent entity, both the parent entity and the non-controlling interests will have an ownership interest in the subsidiary's profits, dividend payments, and share capital and reserves.
3. Under the entity concept, non-controlling interests will be shown as a liability.
4. Under the proprietary concept, non-controlling interests will be shown as a liability

Please provide the single answers for above MCQ 2 parts .Thank you

\begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Potential ordinary shares (POS) } & Number of POS & Incremental EPS \\ \hline Preference shares & 50000 & $0.17 \\ \hline Convertible notes & 50000 & $0.20 \\ \hline Executive options(exercise price $2.20; expiry date 30/06/16) & 100000 & NA \\ \hline Employee options (exercise price - $1.70; expiry date 30/06/14) & 100000 & NA \\ \hline \end{tabular}