In Accordance with AASB 107,what Is the Appropriate Classification for the Conversion

question 12

Multiple Choice

In accordance with AASB 107,what is the appropriate classification for the conversion of preference shares to ordinary shares?

• A) inflow in investing activity
• B) inflow in financing activity
• C) non-cash investing item
• D) non-cash financing item

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Definitions:

Municipal Council

The elected governing body of a municipality responsible for local decision-making and administration.

Order of Prohibition

A legal order issued by a court or a regulatory authority to stop an entity or individual from performing an action.

Movie Theatre

A place where films are shown to the public for entertainment.

Arbitration

A method of dispute resolution involving a neutral third party who renders a binding decision.