The recording of convertible bonds at the date of issue is the same as the recording of straight debt issues.

Name: The recording of convertible bonds at the date of issue is the same as the recording of straight debt issues.
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Convertible bonds are initially recorded as a liability on the issuer's balance sheet, just like straight debt issues. The conversion feature is typically accounted for separately through the use of additional equity accounts.

The Recording of Convertible Bonds at the Date of Issue