Question: Question A10 XY PLC issues 7% redeemable preference shares on 31 August 2020. Which of the following statements is CORRECT ? The issue is classified

Question A10

XY PLC issues 7% redeemable preference shares on 31 August 2020. Which of the following statements is CORRECT?

  1. The issue is classified as equity because share certificates are issued.
  2. The dividend payable on these shares will be included in the Statement of Changes in Equity.
  3. The issue will be recorded by debiting investment and crediting bank.
  4. The dividend payable will be included in XYs finance cost as a period expense.

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