FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Preference shares
On 1 March 2020, NOL issued 3 million 4% redeemable preference shares of $1 each at par and
accounted for as an equity. NOL will redeem the preference shares on 1 March 2025 at $4,408,000.
The effective interest rate associated with the preference shares is 8%. On 28 February 2021, NOL
paid stated rate
Discuss how each of the above events should account for in the financial statement of NOL for the
year ended 28 February 2021 with reference to relevant HKFRSs
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