Preference shares, as noted in AASB 132: Select one: a. should be regarded as debt when redemption is at the option of the holder or on a specified date. b. will be classified as debt or equity based on their legal form rather than the substance of the financial instrument. c. exhibit the characteristics of equity when they are non-redeemable. d. will have their classification as debt or equity affected by the intention to make distributions in the future
Preference shares, as noted in AASB 132: Select one: a. should be regarded as debt when redemption is at the option of the holder or on a specified date. b. will be classified as debt or equity based on their legal form rather than the substance of the financial instrument. c. exhibit the characteristics of equity when they are non-redeemable. d. will have their classification as debt or equity affected by the intention to make distributions in the future
Preference shares, as noted in AASB 132: Select one: a. should be regarded as debt when redemption is at the option of the holder or on a specified date. b. will be classified as debt or equity based on their legal form rather than the substance of the financial instrument. c. exhibit the characteristics of equity when they are non-redeemable. d. will have their classification as debt or equity affected by the intention to make distributions in the future
a. should be regarded as debt when redemption is at the option of the holder or on a specified date.
b. will be classified as debt or equity based on their legal form rather than the substance of the financial instrument.
c. exhibit the characteristics of equity when they are non-redeemable.
d. will have their classification as debt or equity affected by the intention to make distributions in the future
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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