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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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