chapter 15 convertible debt

Dr Liability - with carrying amount Cr SC - nominal value of shares issued Cr SP - balance

Hi 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

My pleasure