Mandatorily redeemable preferred stock (mandatorily redeemable preference shares) is reported among liabilities with related dividends reported in the income statement as interest expense using:
A) IFRS.
B) U.S. GAAP.
C) Neither U.S. GAAP nor IFRS.
D) Both U.S. GAAP and IFRS.

Question

Quizplus · Accepted Answer

Both U.S. GAAP and IFRS require that mandatorily redeemable preferred stock (preference shares) be reported among liabilities with their dividends reported in the income statement as interest expense.

Mandatorily Redeemable Preferred Stock (Mandatorily Redeemable Preference Shares) Is Reported