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Forums › ACCA Forums › ACCA FR Financial Reporting Forums › redeemable preference shares ?
accounting treatment for redeemable preference shares?
redeemable preference shares are treated as Financial liability. have u done the financial assets and financial liabilities chapter?
Just to add on, Yes it is a financial liability reason being you still have a fixed rate of paying the shares to the share holders.
You are obliged to pay whether you like it or not unlike dividends.
Read more from the course notes given.