Which of the Following Equity Instruments Would Be Considered to Be

question 50

Multiple Choice

Which of the following equity instruments would be considered to be ordinary shares for the purposes of IAS 33?

• A)ordinary shares that receive a dividend at the discretion of the ownership group or its representatives
• B)preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate
• C)ordinary shares that have the right to a cumulative fixed rate of dividends
• D)ordinary shares that receive a dividend at the discretion of the ownership group or its representatives and preference shares that are entitled to a fixed low rate of dividends and an additional dividend when the rate of dividend to other classes of shares exceeds that fixed rate

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Definitions:

Overconfidence

A cognitive bias where an individual's subjective confidence in their own abilities is greater than their objective accuracy.

Representativeness Heuristic

A mental shortcut that involves making a decision based on how closely a new situation or object resembles a prototype or typical case.

Fixation

The inability to see a problem from a new perspective, by employing a different mental set.

Heuristics

Mental shortcuts or rules of thumb that allow people to make decisions and solve problems quickly and efficiently, though not always perfectly accurate.