Under IFRS,preference shares are reported as equity and dividends are treated as interest expense on the income statement.

Name: Under IFRS,preference shares are reported as equity and dividends are treated as interest expense on the income statement.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

Under IFRS, preference shares can be classified as either equity or liability depending on their characteristics. Dividends on shares classified as equity are not treated as interest expense but as distributions to equity holders.

Under IFRS,preference Shares Are Reported as Equity and Dividends Are