I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

part of non-current liabilities. 

 

 

 

2.3.3 Ordinary shares 

Ordinary shares are by far the most common type of share. They carry no right to a fixed dividend but 

are entitled to all profits left after payment of any preference dividend. Generally, however, only a part of 

such remaining profits is distributed, the rest being kept in reserve (see below). 

Ordinary shares 

are shares which are not preferred with regard to dividend payments. Thus a holder 

only receives a dividend after fixed dividends have been paid to preference shareholders.  

 

 EXAM FOCUS POINT 

In the exam, the question will specifically state whether the shares are redeemable or irredeemable 

preference shares. 

BPP Tutor Toolkit Copy

---

CHAPTER 19  

//

  INTRODUCTION TO COMPANY ACCOUNTING