Special Discussion Question - Financial Instruments The legal form of a preference share or a convertible note is paramount.' Critically discuss this statement in light of: (a) the Framework's definitions of liabilities and equity: and (b) the requirements of AASB 132' Financial Instruments: Presentation'. (c) Strahan Ltd issued redeemable, cumulative preference shares. What factors would be relevant in deciding whether these shares should be classified as liabilities or equity in accordance with AASB 132 'Financial Instruments: Presentation