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.

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Definitions:

Equipment

Tools or machinery needed for a specific task or purpose.

Confrontative Exposure

A therapeutic practice where individuals confront their fears or traumas directly in a controlled environment to reduce sensitivity.

In Vivo

A term used to describe experiments or procedures performed or taking place in a living organism.

Flooding

A psychological technique used in behavior therapy, often for phobias, where the patient is exposed to an overwhelming amount of the anxiety-provoking stimulus in order to reduce the fear response.