On 1 March 2011, Kind Ltd issued a 3 million non-cummulative preference shares for the...
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On 1 March 2011, Kind Ltd issued a 3 million non-cummulative preference shares for the price of $3.25 million. The requirements of the issue specifies that the shares must be redeemed on 1 March 2018 at a premium of 15%, with coupon rates of the shares of 4%. A similar debt instrument's market rate is 6.5%. In the Statement of financial position for Kind Ltd.'s draft for Feb 28, 2012, the preference shares has been disclosed to be equity.
Please talk about the accounting treatment of the non-cummulative preference shares for the year ending 28 Feb 2012 according to the relevant financial reporting standards where necessary and support the answer with relevant computations
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