The Fact That a Preference Share Is Redeemable

Multiple Choice

The fact that a preference share is redeemable:

A) makes it a financial liability.
B) makes it an equity instrument.
C) makes it a compound financial instrument.
D) does not automatically mean that it is a financial liability. Conditions and rights attaching to the share need to be considered before it can be classified as either a financial liability or equity instrument.