Kind Ltd issued a 3 million non-cummulative preference shares for the price of $3.25 million, On 1 March 2011. The requirements of the issues specifies that the shares issued must be:

Redeemed on 1 March 2018

Premium: 15%

Share coupon rate: 4%

A similar debt instrument's market rate: 6.5%.

The Statement of financial position for Kind Ltd.'s draft for Feb 28, 2012, the preference shares has been disclosed to be equity.

Please talk about the accounting treatment of the non-cummulative preference shares for the year ending 28 Feb 2012 according to the relevant financial reporting standards where necessary and support the answer with relevant computations