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CONSOLIDATED AND SEPARATE FINANCIAL  STATEMENTS




            Subsidiary With - Preference Shares







            • If sub has issued preference shares that are:



                    • Cumulative, and

                    • Non-redeemable


                           • i.e. Classified as equity

            • Then, profit for the year is not all attributable to

                ordinary shareholders



                    • Pref shareholders must be allocated the portion
                       attributable to them


                           • Irrespective of whether pref dividends declared

                           • Accumulate if not declared

                    • Therefore, pref dividends removed before making

                       allocation to ordinary shareholders (B95)

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