Convertible bondsForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Convertible bondsThis topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts April 27, 2017 at 11:11 am #384116 hemraj123MemberTopics: 110Replies: 188☆☆☆Sir, in example 4 of chapter 16, the calculation shows the separation of liability and equity. Wont this be the initial recognition?Thanks May 1, 2017 at 7:39 pm #384495 P2-D2KeymasterTopics: 4Replies: 7097☆☆☆☆☆Hi,Yes, on initial recognition we recognise the liability element as the present value of the future cash flows, assuming no conversion takes place, and the equity element is then the difference between this figure and the proceeds.ThanksAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In