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CIMA Exam CIMAPRA19-F02-1 Topic 5 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 105
Topic #: 5
[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 Ezekiel at Jan 13, 2025, 07:49 AM

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My
4 days ago
You know, if I had a convertible debenture, I'd probably just convert it to shares and call it a day. But I guess the company has to play by the rules. C it is, my friends.
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Tashia
7 days ago
Wait, they want us to disclose nothing? That's like trying to hide the fact that I ate all the donuts in the break room. Not a chance, I'm going with C!
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Jaime
8 days ago
Basic earnings per share? Diluted earnings per share? Sounds like a whole lot of financial mumbo jumbo to me. I'm just going to go with C and hope for the best. Hey, at least it's multiple choice, right?
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Tammy
1 months ago
Ah, the classic diluted earnings per share dilemma. I bet the exam writers are trying to trip us up with that convertible debenture bit. But C is the way to go, no doubt about it.
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Maile
4 days ago
Definitely, disclosing both basic and diluted earnings per share gives a more comprehensive view of the company's financial performance.
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Kate
7 days ago
Yeah, it's better to provide all the relevant information to investors, even if it seems like a tricky question.
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Marlon
12 days ago
It's always important to consider all potential impacts on earnings per share, especially with convertible debentures.
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Jillian
16 days ago
I think it's better to be safe and disclose both basic and diluted earnings per share, just to cover all bases.
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Lettie
21 days ago
I agree, C is the correct choice. Both basic and diluted earnings per share should be disclosed.
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Johanna
22 days ago
It's always important to consider all potential impacts on earnings per share, especially with convertible debentures.
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Jovita
26 days ago
I agree, C is the correct choice. Both basic and diluted earnings per share should be disclosed.
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Fernanda
1 months ago
But what if the conversion of debentures doesn't actually happen? Shouldn't they just disclose basic earnings per share?
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Lanie
1 months ago
Hmm, I think the company should disclose both basic and diluted earnings per share. That way, investors can get a complete picture of the company's performance.
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Tandra
21 days ago
Yes, it's better to be transparent about the company's financial performance to build trust with investors.
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Chau
1 months ago
It's important for investors to have all the information they need to make informed decisions.
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Abraham
1 months ago
I agree, disclosing both basic and diluted earnings per share would provide transparency to investors.
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Valentin
1 months ago
I agree with Layla. It's important to provide investors with all relevant information.
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Layla
1 months ago
I think the company should disclose both basic and diluted earnings per share.
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