Preference Shares,as Noted in AASB 132

question 19

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.

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