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Task Performance - EPS
Task Performance - EPS
Task Performance - EPS
TASK PERFORMANCE 1
In computing earnings per share, which number of outstanding ordinary shares should an entity use
as the denominator?
It is the amount by which the carrying amount of an asset or a cash-generating unit exceeds its
recoverable amount.
It is the present value of future cash flows expected to be derived from an asset or cash-generating
unit.
It is a possible obligation that arises from past events, and whose existence will be confirmed only
by the occurrence and non-occurrence of one or more uncertain future events, not wholly within the
control of the entity.
It is a financial instrument or other contracts that may entitle its holder to ordinary shares.
It is the smallest identifiable group of assets that generates cash inflows that are largely independent
of the cash inflows from other assets or group of assets.
These are assets other than goodwill that contribute to the future cash flows of both the cash
generating unit under review and other cash-generating units.
Option 1: Corporate assets Option 2: Qualifying assets
PART II. Solve the following item using the space provided.
PROBLEM NO. 1
Following data has been extracted from the financial statements of Peter Electronics Limited. You are
required to compute the earnings per share ratio of the company for the year 2016.
P15 par value common stock outstanding on December 31, 2016: P2,376,000
The numbers of shares of both types of stock are same as they were on January 01, 2016 because
company has not issued any new shares of common or preferred stock during the year.
PROBLEM NO. 2
ABC Ltd has a net income of P1 million in the third quarter. The company announces dividends of
P250,000. Total shares issued for the period was 12,000,000, with total shares outstanding at
11,000,000.