Beuno Plc Has 3 000 000 Ordinary Shares on Issue

question 23

Multiple Choice

Beuno Plc has 3 000 000 ordinary shares on issue at the beginning of the year,1 July 2014.These shares were issued at £2.00 each and at the end of the period have a current market value of £4.50.On 1 August 2014,Beuno Plc bought back 600 000 ordinary shares originally issued at £2.50 for £3.00 each.On 1 November 2014,500 000 shares were issued fully paid up at the current market value of these shares.On 1 March 2015,200 000 partly paid-up ordinary shares were issued at an issue price of £3.50.These shares were partly paid to £2.00.The partly paid shares are permitted proportionate rights to vote and receive dividends based on the relationship between the amount paid up and the issue price.What is the weighted-average number of shares calculated in accordance with IAS 33?

• A)2 782 466
• B)2 797 613
• C)2 799 918
• D)2 820 665

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Definitions:

Residual Value

The anticipated monetary value of an asset at the end of its operational life.

Units-Of-Production Depreciation

A depreciation method that allocates the cost of an asset over its useful life based on units produced rather than time, reflecting actual wear and tear.

Accumulated Depreciation

The total amount of depreciation expense allocated to a fixed asset since it was in service, reducing its book value on the balance sheet.

Service Life

The estimated duration of time that an asset is expected to be usable for its intended purpose.