DESTINI Annual Report 2018

35. Earnings Per Share Basic earnings per shares The basic earnings per share are calculated based on the consolidated profit for the financial year attributable to the owners of the parent and the weighted average number of ordinary shares in issue during the financial year as follows: Diluted earnings per share The Group and the Company have no dilution in their earnings per ordinary share as there are no dilutive potential ordinary shares. There have been no other transactions involving ordinary shares or potential ordinary shares since the end of the financial year and before the authorisation of these financial statements. 36. Prior Year Adjustment Certain comparatives have been restated and reclassified in accordance with MFRS 8 Accounting Policies, Changes in Accounting Estimates and Errors as follows: The prior year adjustment was arised from the book of a subsidiary, namely Vanguarde Pte. Ltd.. The details of the prior year adjustment are illustrated as follows: (a) Error in accounting for accrued revenue and accrued costs The Group had errors in accounting for revenue and cost of sales for the financial year 2017. Adjustments were made to restate the revenue and cost of sales by RM5,566,187 and RM4,644,981. These have also been corrected by restatement of trade receivables and trade payables. The impact of the restatement for the financial year ended December 31, 2017 is to decrease profit before tax and retained earnings by RM921,206. (b) Under recognition of bad debts The Group had under recognised bad debts for the financial year 2017. Adjustments were made to restate the other operating expenses and the related trade receivables. These have also been corrected by restatement of trade receivables. The impact for the financial year ended 31 December 2017 is to decrease profit before tax and retained earnings by RM235,054. (c) Reclassifications Certain reclassifications have been made to the prior year’s financial statements to enhance comparability with the current year’s financial statements due to inappropriate reclassifications being made in prior year. Group 2018 2017 RM RM (Restated) Profit attributable to ordinary shareholders 1,774,613 28,852,995 Weighted average number of ordinary shares in issue 1,155,230,199 1,155,230,199 Basic earnings per ordinary shares (in sen) 0.15 2.50 DESTINI BERHAD ANNUAL REPORT 2018 179