单选题 The IASB’s Conceptual framework for financial reporting defines recognition as the process of incorporating in the financial statements an item which meets the definition of an element and satisfies certain criteria. Which of the following elements should be recognised in the financial statements of an entity in the mannerdescribed?

A、 As a non-current liability: a provision for possible hurricane damage to property for a company located in an area which experiences a high incidence of hurricanes
B、 In equity: irredeemable preference shares
C、 As a trade receivable: an amount of $10,000 due from a customer which has been sold (factored) to a financecompany with no recourse to the seller
D、 In revenue: the whole of the proceeds from the sale of an item of manufactured plant which has to be maintainedby the seller for three years as part of the sale agreement

【正确答案】 B

【答案解析】By definition irredeemable preference shares do not have a contractual obligation to be repaid and thus do not meet the definition of a liability; they are therefore classed as equity