IFRS does not separates the convertible bond's debt and equity components.

Question

Quizplus · Accepted Answer

IFRS requires the separation of the debt and equity components of convertible bonds and accounts for them separately. The debt component is recognized as a liability and measured at fair value, while the equity component is recognized in equity and measured as the difference between the fair value of the bond and the fair value of the liability component.

IFRS Does Not Separates the Convertible Bond's Debt and Equity