1.MegsKate Ltd issued preference shares that are redeemable at the option of the issuer.
Explain how MegsKate should classify the preference shares under each of the following
scenarios at 30 June. (a) The company had made no plan to redeem the shares.
(b) The company announced its intention to redeem the shares.
(c) The company had written to the holders of the preference shares informing them
that the company intended to redeem the shares.
2. MegsKate Ltd issued preference shares that are redeemable at the option of the holder.
Explain how MegsKate should classify the preference shares under each of the following scenarios at 30 June.
(a) It was probable the holders would seek redemption of the shares.
(b) It was not probable the holders would seek redemption of the shares.
(c) The holders had requested that the company redeem the shares.
