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Hello Sir,
Quick question on quoted above, how would the final year double entry work if the equity option was exercised?
regards
Dr Liability – with carrying amount
Cr SC – nominal value of shares issued
Cr SP – balanceHi Stephen,
So just for my knowledge.
If year 3 opening was 10m interest was 1m and we received 500k as payments as interest. Then 10.5m would be transferred to equity?
Regards
I am afraid I do not understand your question. Convertible loans is concerned with liabilities and equity, not with a receipt of interest.
Any transfer to equity will only take place on maturity of the bond should the investors choose to swap the shares
Sorry i worded it wrong, and i now have understood your initial response.
Thank you
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