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

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

Question #: 105
Topic #: 5

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 Ezekiel at Jan 13, 2025, 07:49 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Fernanda

8 days ago

But what if the conversion of debentures doesn't actually happen? Shouldn't they just disclose basic earnings per share?

upvoted 0 times

...

Lanie

11 days 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.

upvoted 0 times

Abraham

3 days ago

I agree, disclosing both basic and diluted earnings per share would provide transparency to investors.

upvoted 0 times

...

Valentin

11 days ago

I agree with Layla. It's important to provide investors with all relevant information.

upvoted 0 times

...

Layla

12 days ago

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

upvoted 0 times

...