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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 92 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 92
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

The basic earning per share computed by a company for year ended 31st March 20X7 is 2 per share. The company had certain convertible debentures outstanding as on 31st March 20X7. The conversion of debentures to equity shares would result in the earnings per share to be 2.2. Which of the following should the company disclose?

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Suggested Answer: A

by Annice at Jul 10, 2024, 03:35 AM

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Wayne
1 months ago
Not necessarily. It gives investors a clearer picture of the company's financial performance.
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Nobuko
1 months ago
Option C, no doubt. Hiding the diluted EPS would be like wearing a clown costume to a job interview - it just doesn't make sense.
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Domonique
2 days ago
A) Basic earnings per share only
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Glenna
8 days ago
C) Both basic and diluted earnings per share
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Dorsey
14 days ago
B) Diluted earnings per share only
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Art
17 days ago
A) Basic earnings per share only
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Annelle
1 months ago
I'll go with C as well. Transparency is key, and the company shouldn't try to sugarcoat the numbers. Diluted EPS is important for investors to make informed decisions.
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Quentin
21 days ago
B) Diluted earnings per share only
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Eloisa
27 days ago
A) Basic earnings per share only
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Leana
1 months ago
But wouldn't disclosing both basic and diluted earnings per share be redundant?
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Oretha
2 months ago
Hmm, this seems straightforward. If the conversion of debentures results in a higher EPS, the company should definitely disclose both basic and diluted EPS. Anything less would be like hiding the good news!
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Earleen
2 months ago
I agree with Wayne. It's important to provide investors with all relevant information.
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Melodie
2 months ago
I think the correct answer is C. The company should disclose both basic and diluted earnings per share to provide a complete picture of its financial performance.
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Jose
19 days ago
Investors rely on this information to make informed decisions about the company's stock.
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Jolanda
29 days ago
Yes, disclosing both basic and diluted earnings per share gives a more accurate representation of the company's profitability.
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Merrilee
30 days ago
It's important for investors to have a complete picture of the company's financial performance.
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Moira
1 months ago
I agree, the company should disclose both basic and diluted earnings per share.
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Wayne
2 months ago
I think the company should disclose both basic and diluted earnings per share.
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