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Fr urgent doubt

Nitish Agrawal (CA) (810 Points)

30 April 2015

Whether preference shares are to be taken while calculating the % of holding....plzz reply asap..

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Jithin (Learner) (1057 Points)
Replied 30 April 2015

Yes, you have to take into account the convertible preference shares while calculating the % of holding. Pls check this link and read my reply there for further details. /forum/companies-act-2013-effect-on-financial-reporting-nov-2014-301628.asp#.VUJTq9Kqqko

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Nitish Agrawal (CA) (810 Points)
Replied 30 April 2015

Means on the whole according to you...if preference shares are convertible then it wil be taken into consideration otherwise not...isnt it...correct me if i am wrong...

Jithin (Learner) (1057 Points)
Replied 30 April 2015

Yeah u are right..That is what I meant. And in case the question doesnt mention whether the preference shares are convertible or not, u can just write an assumption that the preference shares are non-convertible and solve the problem as per AS 21 by ignoring preference shares.

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