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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Financial Instruments
Preference shares to be converted into a fixed number of ordinary shares on a fixed date or on the occurrence of an event which is certain to occur.
Question sir, in the issuing entity’s books, should this be classified as equity?
I think it should but just clarifying
Yes, it is to be classified as equity as it gives a residual interest in the assets after deducting the liabilities.
Thanks
