1. Should preferred stock be recognized as a liability as a liabiity, or should it be considered equity? Defend your position. 2. Consider that under International Financial Reporting Standard (IFRS), preferred stock is often reported as debt with the dividends reported in the income statement as interest expense. 3. Under the U.S. GAAP, that is the case only for "mandatorily redeemable: preferred stock, otherwise, it is reported as equity. This is a discussion needs to be explain in reference to the stock