Homework Answers
As per IFRS, Preferred Shares which are redeemable at the option of holder are considered as liability for the company. This is because, the option is not in the hands of the company to keep the shares or redeem it. They will have to redeem it as soon as a shareholder expresses his interest to do so. Therefore, dividends of $20000 are in fact the interest paid to such prefrence shares
- Revised earning before taxes= 750000-20000
- Revised total liabilites= 2300000+400000= 2700000
- Revised shareholder's equity= 5800000-400000= 5400000
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please solve this p13-A
p13-9A
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12-4A
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