Conversion of preference shares to ordinary shares is reported in the financing section of the statement of cash flows.

Name: Conversion of preference shares to ordinary shares is reported in the financing section of the statement of cash flows.
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Conversion of preference shares to ordinary shares does not involve cash flow and is therefore not reported in the statement of cash flows. It is an equity transaction reported in the equity section of the financial statements.

Conversion of Preference Shares to Ordinary Shares Is Reported in the Financing