Convertible debentures

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May 21, 2023 at 9:44 am #684764
ja.jigna@gmail.com
Participant
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Hi John,

In Chapter 11 for Finanical instruments, in Example 3 of convertible debentures:
The balancing figure in Equity after dicounting the cash out flow, shouln’t it be shown in the SFP as well? The amount is $5.7M.
May 25, 2023 at 9:59 pm #685066
P2-D2
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Hi,

Yes, the difference between the proceeds and the initial value of the liability is recognised as an other component of equity on the SFP.

Thanks
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