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Convertible loan

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Convertible loan

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by MikeLittle.
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  • April 18, 2015 at 10:40 pm #241770
    shaina
    Member
    • Topics: 14
    • Replies: 12
    • ☆

    Hi Sir,

    If a convertible loan note is issued where there is a choice to convert to shares or take cash.

    I have valued the liability, ammortised the liabilty cost and now am on the double entry for both options.

    My question is would i need to account for both options in my financial statements?

    Thank you

    April 19, 2015 at 6:34 am #241778
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Dr Cash
    Cr Loan account with discounted value of payments re the loan
    Cr the difference to Other Components of Equity

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