In January 2023, Parker Inc. issued preferred shares that must be redeemed by Parker if the fair value of the company’s common shares exceeds $100 per share. At time of issuance of the preferred shares, Parker’s common shares had a fair value of $60 per share. At December 31, 2023, Parker’s common shares have a fair value of $50 per share, and it is considered unlikely that Parker’s common shares will exceed a fair value of $100 per share.

(a) How should the preferred shares be classified on the statement of financial position as at December 31, 2023, if Parker follows IFRS?

(b) Would the answer to part (a) be different if Parker follows ASPE?