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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › preference shares
hello, I have a question Test your understanding 1 chapter 12 Kaplan study text. My question is why the 1m preference shares are the financial liability & 2m preference shares are the financial equity ? thanks
I don’t keep copies of the study text.
All I can say is that:
1. Redeemable = must pay money = liability
2. Irredeemable = do not need to pay money = equity
Best I can do.
🙂
Thanks tutor a lot !
🙂