Preferred stock subject to redemption at the option of the preferred shareholders appears between liabilities and shareholders' equity in U.S.GAAP and as a liability in IFRS.

Question

Quizplus · Accepted Answer

This is true. Preferred stock subject to redemption at the option of the preferred shareholders is classified as a liability in IFRS, but in U.S. GAAP, it appears between liabilities and shareholders' equity.

Preferred Stock Subject to Redemption at the Option of the Preferred