Under IFRS Preferred Shares Are Classified as a Liability Rather

Multiple Choice

Under IFRS preferred shares are classified as a liability rather than as shareholders' equity under certain conditions.What are the implications:

A) This would affect financial ratios that use shareholders' equity and total liability.
B) This would have no affect on financial ratios.
C) This would affect only on income statement.
D) Preferred stock are never classified as a liability.