QUESTION 3 Glasgow Plc issued 20m of 9% redeemable preference shares on 1 December 2013 at par. The preference dividend is payable at the directors' discretion, although any unpaid dividend will accumulate and Glasgow Plc cannot pay any dividend to its equity shareholders while an unpaid preference dividend is outstanding. The redeemable preference shareholders have the right to redeem the par value of their shares on 30 November 2016. If they choose not to redeem their shares on that date then the shares will become irredeemable, with future dividend rights continuing as described. The dividend for the year ended 30 November 2014 was paid at the year end. Glasgow Plc also issued 15m of 10% irredeemable preference shares on 1 December 2013, again at par. The preference dividend is payable at the directors' discretion, although any unpaid dividend will accumulate and Glasgow Plc cannot pay any dividend to its equity shareholders while an unpaid preference dividend is outstanding. The dividend for the year ended 30 November 2014 was paid at the year end. Required Explain how these shares should be classified in Glasgow Plc's financial statements and calculate the figures that will appear in the company's financial statements for the year ended 30 November 2014. 15%