The conversion of preference shares into ordinary shares requires that any excess ofthe par value of the ordinary shares issued over the carrying amount of thepreference shares being converted should beSelect one:O a. reflected currently in other comprehensive income.O b. reflected currently in income.treated as a direct reduction of retained earnings.O c.O d. treated as a prior period adjustment.

Preference share:- It is the type of share which is having preferential rights over common stock,…

The conversion of preference shares into ordinary shares requires that any excess of the par value of the ordinary shares issued over the carrying amount of the preference shares being converted should be

The conversion of preference shares into ordinary shares requires that any excess of the par value of the ordinary shares issued over the carrying amount of the preference shares being converted should be

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The conversion of preference shares into ordinary shares requires that any excess of
the par value of the ordinary shares issued over the carrying amount of the
preference shares being converted should be
Select one:
O a. reflected currently in other comprehensive income.
O b. reflected currently in income.
treated as a direct reduction of retained earnings.
O c.
O d. treated as a prior period adjustment.

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