Where Preference Shares Are Redeemable at the Discretion of the Issuer

question 31

Multiple Choice

Where preference shares are redeemable at the discretion of the issuer, and shareholders have not been advised of the company's intention to redeem the shares they:

• A) meet the definition of a liability.
• B) represent debt.
• C) are recognised as equity.
• D) are recognised as a financial liability.