A Preference Share Is a Financial Liability

A preference share is a financial liability:

A) if it provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date.
B) if it gives the holder the right to require the issuer to redeem the instrument at or after a particular date for a fixed or determinable amount.
C) if it gives the issuer the sole discretion to redeem the instrument at a date of their choice for a fixed or determinable amount.
D) if it provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date and if it gives the holder the right to require the issuer to redeem the instrument at or after a particular date for a fixed or determinable amount.

Correct Answer:

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