Under IFRS, the proceeds from the issuance of convertible debt are reported as
A)debt only.
B)equity only.
C)debt or equity depending on the circumstances.
D)both debt and equity.

Question

Quizplus · Accepted Answer

Under IFRS, the proceeds from the issuance of convertible debt are reported as both debt and equity since the instrument has both debt and equity features. The portion that represents the debt component is recognized as a liability while the equity component is recorded as part of shareholders' equity.

Under IFRS, the Proceeds from the Issuance of Convertible Debt