In IFRS, preferred stock subject to redemption at the option of the preferred shareholders appears

Question

Quizplus · Accepted Answer

Preferred stock subject to redemption at the option of the preferred shareholders is considered a liability because the company has an obligation to redeem the shares at the preference shareholder's request. As per IFRS, it is classified as a financial liability and reported on the balance sheet under the "liabilities" section.

In IFRS, Preferred Stock Subject to Redemption at the Option