One of the somewhat controversial areas in financial accounting deals with preferred stock. There are two viewpoints on preferred stock: (1) It should be considered and reported as equity. (2) It should be considered and reported as a liability.

Currently, under GAAP, only mandatorily redeemable preferred stock is reported as debt (liability). Otherwise, GAAP requires that preferred stock be reported as equity. This is an area where GAAP and IFRS do not agree.

Research this matter and decide which treatment you prefer. In your post, state your position and the reason why you chose that particular viewpoint. Why do you advocate for your position? Why is this even an issue?