When an entity issues a financial instrument, it has to determine its classification either as debt or as equity. Discuss on the appropriate classification of preference shares, and the accounting treatment of dividends on preference shares, with justification by referring to the relevant accounting standard.

Q: Prepare the journal entry to record the acquisition of the equipment.

A: The record of day-to-day transactions in the books of accounts is called journal entries. In a…

Q: The cost of registering equity securities in a business combination should be capitalized debited to…

A: Here's how this is generally accounted for:Capitalization of Transaction Costs: When a business…

Q: Q. Which of the following is within the scope of investments accounted for using the equity method…

A: Equity Method of accounting:           Any entity can invest in another entity by acquiring less…

Q: prepares separate financial statements

A: Correct Answer is :- A at cost

Q: IFRS requires companies to measure their financial assets at fair value except when based on:(a)…

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: Under Application Guidance 36 of IAS 32, an entity’s own equity instruments also known as treasury…

A: IAS 32 is providing guidance on classification of financial instruments as financial liabilities and…

Q: Analyze the conceptual framework of the pronouncement on equity investments under the international…

A: Equity Investments: When money is invested in a firm via the purchase of shares in that company on…

Q: The sale of stock and the sale of bonds are reported as financing activities. Are payments of…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: Distinguish between public and private corporate debt.

A: Debt is the amount of loan that is borrowed and it is repaid along with the interest.

Q: Entities desiring to issue equity or debt must provide a set of financial statements to any…

A: Corporation:   The form of business entity ,which is incorporated by state law into a separate…

Q: If an entity has issued cumulative redeemable preference shares to the market, discuss what effects…

A: Preference shares are those shares on which a fixed rate of dividend is paid by the company. At the…

Q: An entity shall measure equity instruments issued to extinguish all or part of a financial liability…

A: An entity shall measure equity instruments issued to extinguish all or part of a financial liability…

Q: Payments to acquire bonds of other corporations should be classified on a statement of cash flows…

A: The purchase of bonds of other corporations is a corporate investment and is therefore included in…

Q: Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding…

A: Solution: Debt securities acquired by a corporation which are accounted for by recognizing…

Q: An unrealized holding gain or loss on a company’s equity investment at fair value through other…

A: Solution: Unrealized holding gain or loss on a company’s equity investment is just the virtual…

Q: When are financial statements considered authorized for issue?

A: The monetary record date is the urgent date at which the monetary situation of a substance is…

Q: Describe related stockholders’ equity statements.

A: Stockholders’ equity statement: This statement shows the changes made in the stockholders’ equity…

Q: A entity's policy regarding which short-term, highly liquid investments it classihes as cast…

A: question is about A entity's policy regarding which short-term, highly liquid investments it…

Q: How to prepare a statement of stockholder's equity, specially in terms of the retained earnings and…

A: A statement of  owner's equity shows the equity balances owned by the  stockholders showing the…

Q: Explain the difference between authorized, issued, and outstanding shares.

A: Stockholders’ Equity: Stockholders’ Equity is the total amount of capital given to a company by its…

Q: What are the advantages and disadvantages of reviewing the balance statement for a company.

A: Any financial statement typically lists a company's assets and debts, including shareholder equity…

Q: what are major categories of debt and stock for a corporation.

A: Several businesses and people employ debt to finance major purchases that they would not be able to…

Q: Question: about IFRS 2. Evaluate whether the treatment of the two types of share-based payments as…

A: Answer:- IASB meaning:- The International Accounting Standards Board is known by its acronym, IASB.…

Q: Financial contracts are those which give simultaneous rise to the financial assets of one entity and…

A: Introduction: A financial contract is an arrangement in the form of an individually negotiated deal,…

Q: Where can authoritative IFRS guidance related to stockholders’ equity be found?

A:

Q: y method for the preparation of consolidated financial statements in order to make investment…

A: Argue for using the equity method for the preparation of consolidated financial statements in order…

Q: f the employee has the choice as to whether the settlement is in cash or by issuance of equity…

A: A Compound Financial Instrument is an instrument that has the characteristic of both an equity and…

Q: How shall an entity subsequently measure financial liabilities?  Is IFRS measurement of financial…

A: Financial liabilities can be measured at amortized cost by using effective interest method and it…

Q: Can you give me an example of intra-equity asset transactions? How do you account for intra-equity…

A: Intra-equity asset transactions are transactions that occur between entities that are under common…

Q: Should preference shares be disclosed as equity or as debt?

A: Stocks: Stocks are shares in ownership in other companies. It represents the capital raised by a…