Part b The following cases appear in the books of A Ltd: 9%-Convertible preference shares. These preference shares are compulsory convertible into ordinary shares on a 1:1 basis after 5 years. The preference dividends are non- cumulative. 10%-Redeemable preference shares. These preference shares pay compulsory, cumulative dividends and are compulsory redeemed in cash after 5 years. 11%-Redeemable preference shares. These preference shares' dividends are under discretion of A Ltd and A Ltd can choose to redeem them after 5 years. 12%-Redeemable preference shares. These preference shares pay compulsory, cumulative dividends. They will be redeemed after 5 years if A Ltd's net profit percentage has increased by at least 5% over the 5-year period. 13%-Convertible debentures. The holder of these debentures has the choice to choose after 5 years that the debentures are redeemed in cash, or that they are converted into ordinary shares in A Ltd. 14%-Debentures. These debentures will never be redeemed, but pay 14% interest each year. Required: 2.2 12 Indicate whether each of the above instruments will be presented as debt (financial liabilities) or equity in the financial statements of A Ltd