Is preference share a debt or equity? 741 viewsMay 7, 2013Accounting 0 Chancellor December 2, 2012 0 Comments I know that ordinary shares is part of the equity but what about the preference shares? Is it equity or debt? 2 Answers ActiveVotedNewestOldest 0 Guest60 Posted May 7, 2013 0 Comments IF the preference share is irredeemable then it’s equity. If the preference shares are redeemable , then they are considered as debt and actually, the dividend paid is considered as finance cost and it’s included on the income statement. You are viewing 1 out of 2 answers, click here to view all answers. Register or Login Search for:
