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Dear Sir,
What is the current treatment of issue of Preference Shares and preference dividends?
Waiting for ur response..Thankyou
Irredeemable preference shares treated as Equity – but most unlikely that you’ll meet these in the exam
Redeemable preference shares treat as long term liability
Irredeemable Preference Share dividends – I suppose they will appear as a deduction shown in Statement of Changes in Equity (though I have never seen this, neither in the exams nor in real life)
Redeemable Preference Share dividends treated as finance charge in the statement of profit or loss
OK?
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