r/CIMAUK

On 1 January 20X9 CSA, a listed entity, had 3,000,000 $1 ordinary shares in issue. On 1 May 20X9, CSA made a bonus issue of 1 for 3.

On 1 September 20X9, CSA issued 2,000,000 $1 ordinary shares for $3.20 each, giving a weighted average number of shares used in the basic EPS calculation of 4,666,667.

The profit before tax of CSA for the year ended 31 December 20X9 was $1,040,000. The income tax expense for the year was $270,000.

The basic earnings per share for the year ended 31 December 20X8 was 15.4 cents.

On 1 November 20X9 CSA issued convertible loan stock. Assuming the conversion was fully subscribed there would be an increase of 2,400,000 ordinary shares in issue. The liability element of the loan stock is $4,000,000 and the effective interest rate is 7%.

CSA is subject to income tax at a rate of 30%.

Calculate the diluted earnings per share for the year ended 31 December 20X9, in accordance with the requirements of IAS 33 Earnings Per Share. Give your answer to 1 decimal place.

Hi guys,

I recently completed AAT Levels 2 & 3, both with Distinctions, and am looking at going into CIMA from there instead of doing AAT Level 4 (this was suggested as a possible route from my manager) because I am already an Assistant Accountant doing management accounts for several entities within a larger company.

Has anyone else jumped straight from AAT Level 3 into CIMA, and if so, where did you start?? Any guidance appreciated!