CERTYNEX IFRS ACADEMY

On 5 December, Vervora buys preferred shares of a top-tier issuer, redeemable on the following 15 January at a contractually fixed price (case data). How should they be qualified at 31 December?

Excluded investment, every equity instrument being excluded from cash equivalents without exception.

Cash in the strict sense, redemption being certain.

A cash equivalent in substance: acquired shortly before a specified redemption date.

Trading securities classified as operating activities.