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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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