International accounting standards require mandatory redeemable preferred stock to be classified as a liability on the balance sheet and not as equity.

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International accounting standards, specifically IAS 32, require mandatory redeemable preferred stock to be classified as a liability on the balance sheet, as it represents an obligation for the issuer to make payments to the shareholders, rather than a true equity investment.

International Accounting Standards Require Mandatory Redeemable Preferred Stock to Be