HEre is a possible assignment question related to IAS 33 - Earnings per Share:

Company XYZ has the following capital structure as at 31 December 2019:

• 10 million ordinary shares of $1 each, issued and fully paid up
• 5 million convertible preference shares of $5 each, which can be converted into ordinary shares at a ratio of 1:2
• 2 million convertible bonds of $100 each, which can be converted into ordinary shares at a ratio of 1:5
• Net profit for the year ended 31 December 2019 is $20 million
• Non-controlling interest is 25%
• Effective tax rate is 30%

Required:

1. Calculate the basic and diluted earnings per share (EPS) for Company XYZ for the year ended 31 December 2019.
2. Discuss the potential impact of the convertible preference shares and bonds on the EPS calculation, and how to adjust for potential dilution.
3. Explain the importance of EPS as a performance metric for investors and analysts, and the potential consequences of misreporting or manipulating EPS data.
4. Analyze the limitations of EPS as a performance metric, and identify other financial ratios and indicators that can complement or supplement EPS in evaluating a company's performance.
5. Evaluate the implications of the non-controlling interest on the EPS calculation, and discuss the challenges and opportunities of reporting EPS in a group of companies.