Discuss how each of the above events should account for in the financial statement of NOL for the year ended 28 February 2021 with reference to relevant HKFRSs
Discuss how each of the above events should account for in the financial statement of NOL for the year ended 28 February 2021 with reference to relevant HKFRSs
Discuss how each of the above events should account for in the financial statement of NOL for the year ended 28 February 2021 with reference to relevant HKFRSs
Preference shares On 1 March 2020, NOL issued 3 million 4% redeemable preference shares of $1 each at par and accounted for as an equity. NOL will redeem the preference shares on 1 March 2025 at $4,408,000. The effective interest rate associated with the preference shares is 8%. On 28 February 2021, NOL paid stated rate preference share dividend for the year to its shareholders.
Discuss how each of the above events should account for in the financial statement of NOL for the year ended 28 February 2021 with reference to relevant HKFRSs
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
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