How are convertible preferred shares subsequently measured under IFRS 9 and ASPE 3856?

Convertible preferred shares are subsequently measured under IFRS 9 and ASPE 3856 primarily at fair value. This is a key concept in financial reporting, as it reflects the current market conditions and provides a more accurate representation of a financial instrument's worth over time. Under IFRS 9, there is the option to measure convertible preferred shares either at fair value through profit or loss or at fair value through other comprehensive income, depending on the entity's business model for managing these financial assets and the contractual cash flow characteristics.

For ASPE 3856, convertible preferred shares, like other equity instruments, are typically measured at historical cost unless there are specific factors that necessitate fair value measurement.

This understanding of measurement bases aids in better financial analysis and reporting, allowing stakeholders to have up-to-date and relevant information regarding the entity's equity-related financial instruments.