The following information relates to Hardin Limited’s year-ended 31 December 2020: The statement of comprehensive income shows profit for the year of R154 000. The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000) Profit on sale of plant: R23 200 (before tax: R32 000) Inventory write-down: R10 000 (before tax: R15 000) The statement of changes in equity reflected preference dividends of R3 450. 12 000 shares in issue throughout the year. Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020
The following information relates to Hardin Limited’s year-ended 31 December 2020: The statement of comprehensive income shows profit for the year of R154 000. The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000) Profit on sale of plant: R23 200 (before tax: R32 000) Inventory write-down: R10 000 (before tax: R15 000) The statement of changes in equity reflected preference dividends of R3 450. 12 000 shares in issue throughout the year. Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to Hardin Limited’s year-ended 31 December 2020:
The statement of comprehensive income shows profit for the year of R154 000.
The calculation of this profit included the following income and expenses: Impairment of building: R64 000 (before tax: R74 000)
Profit on sale of plant: R23 200 (before tax: R32 000)
Inventory write-down: R10 000 (before tax: R15 000)
The statement of changes in equity reflected preference dividends of R3 450.
12 000 shares in issue throughout the year.
Required: Calculate the basic earnings and the headline earnings and disclose the headline earnings per share for the year-ended 31 December 2020
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