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(b) A company has issued specific preference shares to its fund managers. They carry the right to an annual payment based on 10% of the
(b) A company has issued specific preference shares to its fund managers. They carry the right to an annual payment based on 10% of the realised gains on the fund recorded in the period. How should the preference shares be accounted for? Give reasons for your answer. Your answer to this part of the question should not be more than 120 words. (4 marks)
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