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Preference shares

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Preference shares

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • December 11, 2019 at 8:47 am #555654
    aadil1234
    Member
    • Topics: 75
    • Replies: 104
    • ☆☆

    Sir if an investor has 51% in a firm but he has the right to receive only fixed return whether the the return of the company earns less or more and also doesnt control the return of that firm.

    So is it necessary that we will always treat that 51% as debt under the head of preference shares?

    December 11, 2019 at 3:13 pm #555685
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3431
    • ☆☆☆☆☆

    Definitely debt
    Investee has obligation to deliver cash
    No need to call it ‘preference shares’

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