Question 17 Part 1 (a) The NZ Conceptual Framework prescribes several criteria that must be satisfied before an item is included in the balance sheet or statement of comprehensive income. With reference to the NZ Conceptual Framework, briefly explain when each of the following elements can be recognised in the financial statements: (i) Asset (ii) Liability (iii) Revenue (iv) Expense (b) (1) Briefly describe four characteristics of each of the following types of shares: () Preference shares classified as shareholder equity in the balance sheet. (5) Preference shares classified as long-term liability in the balance sheet. (II) Briefly explain how dividends paid to owners of each of the following types of shares should be accounted for: Preference shares classified as shareholder equity in the balance sheet. () Preference shares classified as long-term liability in the balance sheet.