Question

According to IFRS BE4.6 (LO2,3) Indicate in what section (gross profit, income from operations, or income...

According to IFRS

BE4.6 (LO2,3) Indicate in what section (gross profit, income from operations, or income before income tax) the following items are reported: (a) interest revenue, (b) interest expense, (c) loss on impairment of goodwill, (d) sales revenue, and (e) administrative expenses.

BE4.10 (LO3) In 2019, Hollis Corporation reported a net income of $1,000,000. It declared and paid preference dividends of $250,000. During 2019, Hollis had a weighted average of 190,000 ordinary shares outstanding. Compute Hollis's 2019 earnings per share.

BE4.12 (LO4,5) Using the information from BE4.11, prepare a retained earnings statement for the year ended December 31, 2019. Assume an error was discovered: Land costing NT$80,000 (net of tax) was charged to repairs expense in 2018.

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Answer #1

BE4.6

(a) Interest Revenue : Will be recorded in other income before "income from operations" also known as operating profit.

(b) Interest Expense : Will be recorded in "income before income tax" as finance cost.

(c) Loss on Impairment of Goodwill : Will be recorded as Impairment Losses in income from operations also known as operating profit.

BE4.10

EPS = (Net Income - Prefrence Dividend)/weighted average ordinary shares

EPS = (1,000,000 - 250,000)/190,000

EPS = $ 3.95 per share

BE4.12

I need BE4.11 to solve BE4.12, since both are inter-related. Can you upload both in seperate question? Thank you

If there is any doubt on previous 2 solutions to comment, I will try to clear them

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