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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Claudio

5 days 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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Wilburn

10 days 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

15 days 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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Oneida

20 days 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

20 days 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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Rozella

26 days ago

I think the company should disclose both basic and diluted earnings per share.

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