Under IFRS preferred shares are classified as a liability if:

Name: Under IFRS preferred shares are classified as a liability if:
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Under IFRS, preferred shares are classified as a liability if the issuer has a contractual obligation to pay dividends or redeem the shares at a future date. This is because the issuing company has a legal obligation to make these payments, similar to a debt instrument. The other options provided do not necessarily classify preferred shares as a liability under IFRS.

Under IFRS Preferred Shares Are Classified as a Liability If