Milano Ltd issued 1 000 preferred shares for 10 per share
Milano Ltd. issued 1,000 preferred shares for $10 per share. The preferred shares pay an annual, cumulative dividend of $0.50 per share, and become mandatorily redeemable if net income drops below $500,000 in any fiscal year.
Discuss how Milano Ltd. should account for the preferred shares under IFRS. Would the accounting for the preferred shares differ if Milano Ltd. adopted ASPE?
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