Preference Shares,as Noted in AASB 132

question 41

Multiple Choice

Preference shares,as noted in AASB 132:

• A) Should be regarded as debt when redemption is at the option of the holder or on a specified date.
• B) Will be classified as debt or equity based on their legal form rather than the substance of the financial instrument.
• C) Exhibit the characteristics of equity when they are non-redeemable.
• D) Will have their classification as debt or equity affected by the intention to make distributions in the future.
• E) All of the given answers.

---

Definitions:

Benchmarking

Uses external comparisons to gain insights for planning.

Best Practices

Best practices refer to the most efficient and effective methods of operating or performing tasks, identified through experience and research, which serve as benchmarks for businesses or organizations.

Planning Technique

A systematic method or approach used in preparing and executing plans or strategies to achieve desired objectives.

Household Savings

The portion of disposable income not spent on consumption of goods and services, often stored for future use or investment.