As of January 1,2013 there are 2 years of dividends in arrears on an issue of cumulative nonconvertible preferred shares.No dividends on preferred shares were declared in 2013.Therefore,under IFRS,on the Dec.31,2013 financial statements,the firm issuing the preferred shares:
A) Reports a liability equal to 3 years of dividends on preferred shares
B) Reports a liability equal to 2 years of dividends on preferred shares
C) Subtracts 2 years of dividends on preferred shares from earnings when computing earnings per share for 2013
D) Discloses in a footnote to 2013's balance sheet that there are 3 years of dividends on preferred shares in arrears
E) Discloses in a footnote to 2013's balance sheet that there are 2 years of dividends on preferred shares in arrears
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