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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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