preference share capital

Share capital consisting of preference shares. Under Financial Reporting Standard (FRS) 4, Capital Instruments, preference share capital was classified as non-equity share capital. However, FRS 4 has now been replaced by FRS 25 (International Accounting Standard 32), Financial Instruments: Disclosure and Presentation, which states that from 1 January 2005 preference shares should be classified as liabilities rather than shareholders' equity

Accounting dictionary. 2014.

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  • preference share capital — share capital consisting of preference shares Under Financial Reporting Standard 4, Capital Instruments, preference share capital was classified as non equity share capital. However, FRS4 has now been replaced by FRS25, Financial Instruments:… …   Big dictionary of business and management

  • preference share capital — UK US noun [U] US also preferred capital) FINANCE, STOCK MARKET ► money that a company has from selling preference shares. Shareholders with these shares must be paid before those with ordinary shares when a company is paying dividends or if it… …   Financial and business terms

  • preference share — A share in a company that is entitled to a fixed percentage dividend rather than a variable dividend; for example, a 6% preference share pays a dividend of 6% per annum. If the company goes into liquidation, the preference shares are paid out… …   Accounting dictionary

  • preference share — a special type of share in a company, which has the characteristic that it confers an entitlement to a specified percentage rate of dividend that is payable in priority to the claims of ordinary shareholders. A company s share capital may be… …   Law dictionary

  • preference share — preferred shares of a corporation that have first claim to preferred dividends. Bloomberg Financial Dictionary A type of share that pays a fixed percentage dividend. Preference shareholders come before the ordinary shareholder when it comes to… …   Financial and business terms

  • preference share — A share in a company yielding a fixed rate of interest rather than a variable dividend. A preference share is an intermediate form of security between an ordinary share and a debenture Preference shares usually confer some degree of ownership of… …   Big dictionary of business and management

  • equity share capital — A company s issued share capital excluding any part of that capital which neither as respects dividends nor as respects capital carries any right to participate beyond a specified amount in a distribution (section 548, Companies Act 2006).… …   Law dictionary

  • Ordinary Share Capital —    Ordinary shares represent ownership in a limited liability company. Shareholders are entitled to dividends when they are declared by the company board of directors. Shareholders also have the last claim on the assets and income, after other… …   Financial and business terms

  • zero dividend preference share — ( zeros ) Zeros are capital shares in a split capital investment trust. They do not receive any dividend income but get part of the capital growth of the assets held by the trust when the trust is wound up. Zeros are preference shares and are… …   Financial and business terms

  • stepped preference share — A preference share that earns a predetermined income, which rises steadily by a set amount each year to the winding up date; there is also a predetermined capital growth …   Big dictionary of business and management

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