Question: 6.1 3 Points Small Ltd has recently issued some preference shares to Big Ltd. The CFO of Small Ltd consults you, the company accountant, to

6.1 3 Points Small Ltd has recently issued some preference shares to Big Ltd. The CFO of Small Ltd consults you, the company accountant, to determine if the preference shares should be classified as equity instruments or as financial liabilities and to calculate the associated consequences for the company's financial statements. Required: Please explain to the CFO of Small Ltd the financial statement consequences of the decision to classify the preferences shares as financial liabilities rather than equity instruments

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