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Issue costs on covertible debentures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Issue costs on covertible debentures

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by Stephen Widberg.
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  • November 19, 2020 at 6:23 pm #595652
    manishatai
    Member
    • Topics: 35
    • Replies: 21
    • ☆☆

    Hi, how are issue costs treated in convertible debentures. I have just done a question and the answer has split the issue costs between equity and liability, after finding the liability and equity balances

    November 19, 2020 at 6:55 pm #595654
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3440
    • ☆☆☆☆☆

    That’s correct. Calculate the debt / equity split then pro-rate the issue costs.

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