Preferred Stock – GAAP
Preferred stocks are a form of stock that may have properties of both equity and debt securities. Preferred stocks have guaranteed priority over common stock in the payment of dividends and usually in the distribution of assets. Preferred stock may be mandatorily redeemable, which is considered a debt security despite its legal form, or non-mandatorily redeemable, which is considered an equity security.
This OnDemand Learning session will provide an overview of key reporting requirements for preferred stocks, examples of journal entries, and other considerations for an insurance company purchasing preferred stock under Generally Accepted Accounting Principles.
