- This topic has 3 replies, 2 voices, and was last updated 9 years ago by
.
- Posts
Dear Sir,
I ve some issues in the above mentioned topic:
1)Does all forms of Preference ShareCapital i.e, Cumulative, Non Cumulative, Reedemeable, And Participating appear in the Equity Section and “NOT” under Long term Liabilities..?
2)If Yes then does Preference ShareCapital needs to be shown in the SOCIE?
3)Whether to show the Preference dividend in Finance Costs in the Income Statement, no matter paid or not paid..?Redeemable (repayable) preference shares are shown as long-term liabilities.
Irredeemable (not repayable) preference shares are shown as equity.The dividend on redeemable preference shares is shown as a finance cost in the Statement of profit or loss (and therefore not in the Statement of changes in equity).
The dividend on irredeemable preference shares is treated in the same way as ordinary dividends and is not shown in the Statement of profit or loss, but is shown in the Statement of changes in equity.
- You must be logged in to reply to this topic.