A Company Issues Bonus Shares for No Consideration on 1

question 19

Multiple Choice

A company issues bonus shares for no consideration on 1 August 2021. For the reporting period ended 30 June 2022, the calculation of:

• A) only basic earnings per share must be adjusted retrospectively for all periods that are presented in the financial statements.
• B) only the diluted earnings per share must be adjusted retrospectively for all periods that are presented in the financial statements.
• C) both basic earnings per share and diluted earnings per share may be adjusted retrospectively at the option of the entity for all periods that are presented in the financial statements.
• D) both basic earnings per share and diluted earnings per share must be adjusted retrospectively for all periods that are presented in the financial statements.

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Definitions:

Monte Carlo Simulation

A computational technique that utilizes random sampling and statistical modeling to estimate mathematical functions and mimic the operation of complex systems.

Probability Distributions

A mathematical function that outlines every potential value and their probabilities that a random variable might assume across a specified spectrum.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of the investor's wealth maximization.

Modern Techniques

Contemporary methods used in various fields to improve efficiency, accuracy, and productivity.