1. The Garfish Company had profits after tax of £3.

0 million in the year ended 31 December

20X7. On 1 January 20X7, Garfish had 2.4 million ordinary shares in issue. On 1 April 20X7
Garfish made a one for two rights issue at a price of £1.40 when the market price of Garfish's
shares was £2.00.
Requirement
What is Garfish's basic earnings per share figure for the year ended 31 December 20X7,
according to IAS 33 Earnings per Share?

2. At 31 December 20X6, the issued share capital of Entity A consisted of 3,000,000 ordinary
shares of 20p each. Entity A has granted options that give holders the right to subscribe for
ordinary shares between 20X8 and 20X9 at 50p each. Options outstanding at 31 December
20X7 were 600,000. There were no grants, exercises or lapses of options during the year. The
profit after tax attributable to ordinary equity holders for the year ended 31 December 20X7
amounted to £900,000 arising from continuing operations. The average market price of one
ordinary share during year 20X7 was £1.50.
Requirement
Calculate the diluted earnings per share for 20X7.
3. In order to maximise its net assets per share, The Parea Company wishes to recognise the
minimum deferred tax liability allowed by IFRS. Parea only pays tax to the Government of
Gredonia, at the rate of 22%.
On 1 January 20X6 Parea acquired some plant and equipment for £30,000. In the financial
statements it is being written off over its useful life of four years on a straight-line basis, even
though tax depreciation is calculated at 27% on a reducing-balance basis.
On 1 January 20X3 Parea acquired a property for £40,000. Both in the financial statements and
under tax legislation it is being written off over 25 years on a straight-line basis. On 31 December
20X7 the property was revalued to £50,000 with no change to its useful life, but this revaluation
had no effect on the tax base or on tax depreciation.
Requirement
Determine the following amounts for the deferred tax liability of Parea in its consolidated financial
statements according to IAS 12 Income Taxes.
(a) The deferred tax liability at 31 December 20X6
(b) The deferred tax liability at 31 December 20X7
(c) The charge or credit for deferred tax in profit or loss for the year ended 31 December 20X7