When convertible debt is retired by the issuer, any material difference between the cash acquisition price and the carrying amount of the debt should be

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When convertible debt is retired by the issuer, any material difference between the cash acquisition price and the carrying amount of the debt should be reflected currently in income, but not as an extraordinary item. This is in accordance with generally accepted accounting principles (GAAP) which require that gains and losses from debt extinguishment be reported in the income statement as a component of income from continuing operations. However, if the transaction is unusual or infrequent, it may be disclosed separately within the income statement.

When Convertible Debt Is Retired by the Issuer, Any Material