Unit 7 - IAS 33 Earnings Per Share Instructions: Answer the following question Question 1 The following information relates to Spanish Rock Plc for the year ended 31 December 2010. Spanish Rock Plc had 100000 ordinary shares of $1 each in issue throughout the year. Spanish Rock Plc has in issue warants entitling the holder to subscribe for a total of 50000 shares in the company. The warrants may be evercised after 31 December 2015 at a price of \$1.10 per share. The average fair value of the shares was $1.28. The company had paid an ordinary dividend of $15000 and a preference dividend of $9000. Required (a) Explain the following: (i) Basic eamings per share (ii) Diluted eamings per share (iii) Potential ordinury ghures (iv) Limitation of EPS as a performance measure (b) Calculate the basic EPS for Spanish Rock Plc for the year ended 31 December 2010 in accordance with best accounting practices. (c) Calculate the diluted EPS figure to be disclosed in the statutory accounts of Spanish Rock PIc in respect of the year ended 31 December 2010. (d) Briefly comment on the need to disclose a diluted EPS fipure and on the relevance of this figure to the shartholders