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  3. 1. classify the below types of preference shares i

1. Classify the below types of preference shares into either equity instrument of financial liability,...

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Accounting

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1. Classify the below types of preference shares into either equity instrument of financial liability, and explain why. From the perspective of the issuer Equity Financial liability 1. Ordinary shares 2. Preference Shares Non-redeemable Discretionary distributions 3. Preference Shares Mandatorily redeemable Non-discretionary distributions 4. Preference shares Redeemable at option of holder Conditional distributions 5. Preference shares Redeemable at option of issuer Conditional distributions 2. Should the dividends on preference shares be recognised directly in equity or as an expense in profit or loss

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