Financial Instruments (IFRS 9) (1) IAS 32 Presentation XYZ preference shares will pay out $5 in five years. XYZ will pay $5 in its own ordinary shares. he Company issues 5% fixed preference shares with a nominal value of $1 each. The number of ordinary shares issued will vary to equate to $5 in value. Discuss the classification of preference shares. (2) Classification of financial asset Beta Limited made an investment in 500 equity shares, at $12 per share, of Gamma Limited quoted in an active market. However, this investment was not made or held for trading purposes. Explain the classification of the investment under IAS 39 and IFRS 9