CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 102 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 102
Topic #: 2

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?

ABasic earnings per share only

BDiluted earnings per share only

CBoth basic and diluted earnings per share

DNeither basic nor diluted earnings per share

Show Suggested Answer

Suggested Answer: A

by Mertie at Oct 21, 2024, 09:55 AM

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Jamal

19 days ago

Haha, who even needs earnings per share? I just invest based on my gut feeling and the company's snack selection in the break room.

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Allene

2 days ago

A) Basic earnings per share only

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Claudio

1 months ago

Nah, that's not enough. Investors need to know the full picture. Gotta go with option C, both basic and diluted EPS.

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Osvaldo

22 days ago

It's better to provide a complete picture for investors to make informed decisions.

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Jolanda

28 days ago

Yeah, disclosing both basic and diluted EPS is important for transparency.

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Jerlene

29 days ago

I agree, investors need to have all the information.

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Wilburn

1 months ago

Hold up, what if the company wants to keep it simple and just report the basic EPS? That would be option A, right?

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Cyril

2 months ago

Yup, I agree. Diluted EPS is important for investors to understand the potential impact of convertible securities on the company's earnings.

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Emerson

9 days ago

C) Both basic and diluted earnings per share

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Kristel

11 days ago

C) Both basic and diluted earnings per share

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Tori

17 days ago

B) Diluted earnings per share only

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Margarita

20 days ago

A) Basic earnings per share only

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Oneida

2 months ago

I agree with Rozella. It's important for investors to have a complete picture of the company's financial performance.

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Malcom

2 months ago

Hmm, this seems pretty straightforward. If the conversion of debentures results in a higher EPS, the company should disclose both basic and diluted EPS, right?

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