Under IFRS,an item such as a convertible bond must be separated into two parts,showing one part in the Liability category and the other part in the Stockholders' Equity category.

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Under IFRS, a convertible bond is considered a hybrid instrument that contains both liability and equity components. The liability component represents the obligation to repay the principal and interest on the bond, while the equity component represents the option to convert the bond into common shares. These two components must be separated and accounted for separately, with the liability portion being recorded in the Liability category and the equity portion being recorded in the Stockholders' Equity category.

Under IFRS,an Item Such as a Convertible Bond Must Be