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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Convertible loan
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
Dr Cash
Cr Loan account with discounted value of payments re the loan
Cr the difference to Other Components of Equity
