Benjy Ltd Has 8 000 000 Ordinary Shares on Issue

question 57

Multiple Choice

Benjy Ltd has 8 000 000 ordinary shares on issue at the beginning of the year,1 July 2015.These shares were issued at $1.00 each and have a current market value at the end of the period of $5.20.On 1 September 2015,Benjy Ltd bought back 1 000 000 ordinary shares originally issued at $1.50 for $4.00 each.On 1 February 2016,2 000 000 shares were issued at the current market value of these shares.On 1 March 2016,900 000 partly paid-up ordinary shares were issued at an issue price of $5.00.These shares were partly paid to $4.00.Shares are not granted proportionate rights to receive dividends.This right attaches only when the shares are fully paid.The shares,however,do provide a proportionate right to vote at annual general meetings.What is the weighted-average number of shares calculated in accordance with AASB 133?

• A) 8 232 438
• B) 8 083 333
• C) 7 991 781
• D) 8 803 333

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Definitions:

Database Access

Database access pertains to the permission or capability to retrieve or manipulate data stored in a database.

Upfront Advice

Preliminary counsel or guidance provided, often involving a fee, before the client commits to a service or makes an investment.

AASB 2

Refers to the Australian Accounting Standards Board standard on Share-based Payment, which outlines the financial accounting and reporting of share-based payment transactions.