Document ID: chunk:federal_register_of_legislation:F2021C00879:body:0:p32
Version: federal_register_of_legislation:F2021C00879
Segment Type: other
Provision Reference: 
Character Range: 112006–118564

Fourth quarter  CU67

The average market price of ordinary shares from 1 July to 1 September 20X1 was CU65.
Ordinary shares: The number of ordinary shares outstanding at the beginning of 20X1 was 5,000,000. On 1 March 20X1, 200,000 ordinary shares were issued for cash.
Convertible bonds: In the last quarter of 20X0, 5 per cent convertible bonds with a principal amount of CU12,000,000 due in 20 years were sold for cash at CU1,000 (par). Interest is payable twice a year, on 1 November and 1 May. Each CU1,000 bond is convertible into 40 ordinary shares. No bonds were converted in 20X0. The entire issue was converted on 1 April 20X1 because the issue was called by Company A.
Convertible preference shares: In the second quarter of 20X0, 800,000 convertible preference shares were issued for assets in a purchase transaction. The quarterly dividend on each convertible preference share is CU0.05, payable at the end of the quarter for shares outstanding at that date. Each share is convertible into one ordinary share. Holders of 600,000 convertible preference shares converted their preference shares into ordinary shares on 1 June 20X1.
Warrants: Warrants to buy 600,000 ordinary shares at CU55 per share for a period of five years were issued on 1 January 20X1. All outstanding warrants were exercised on 1 September 20X1.
Options: Options to buy 1,500,000 ordinary shares at CU75 per share for a period of 10 years were issued on 1 July 20X1. No options were exercised during 20X1 because the exercise price of the options exceeded the market price of the ordinary shares.
Tax rate: The tax rate was 40 per cent for 20X1.

20X1                                                                                                  Profit (loss) from continuing operations attributable to the parent entity(a)              Profit (loss) attributable to the parent entity

                                                                                                                                                                                     CU                                                              CU
First quarter                                                                                                                                                                        5,000,000                                                       5,000,000
Second quarter                                                                                                                                                                       6,500,000                                                       6,500,000
Third quarter                                                                                                                                                                        1,000,000                                                       (1,000,000)(b)
Fourth quarter                                                                                                                                                                       (700,000)                                                       (700,000)
Full year                                                                                                                                                                            11,800,000                                                      9,800,000

(a) This is the control number (before adjusting for preference dividends).
(b) Company A had a CU2,000,000 loss (net of tax) from discontinued operations in the third quarter.

First Quarter 20X1
Basic EPS calculation                                                                                                                                                                 CU
Profit from continuing operations attributable to the parent entity                                                                                                                   5,000,000
Less: preference share dividends                                                                                                                                                      (40,000)(a)
Profit attributable to ordinary equity holders of the parent entity                                                                                                                   4,960,000

Dates                                                                                                                                               Shares outstanding                             Fraction of period                  Weighted-average shares
1 January–28 February                                                                                                                               5,000,000                                      2/3                                 3,333,333
Issue of ordinary shares on 1 March
1 March–31 March                                                                                                                                    200,000                                        1/3                                 1,733,333
Weighted-average shares                                                                                                                             5,200,000                                                                          5,066,666
Basic EPS                                                                                                                                                                                                                              CU0.98

Diluted EPS calculation
Profit attributable to ordinary equity holders of the parent entity                                                                                                                                                    CU4,960,000
Plus: profit impact of assumed conversions
                                                                                                                                                    Preference share dividends        CU40,000     (a)
                                                                                                                                                    Interest on 5% convertible bonds  CU90,000     (b)
Effect of assumed conversions                                                                                                                                                                                          CU130,000
Profit attributable to