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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Diluted EPS (with convertible loan notes)
Hi there!
Sir, which is the relevant rate of interest, effective or nominal, for savings computation on redemption of convertible loan notes in the computation of DEPS?
Thank you
Hi,
Technically it should be the effective interest rate but we rarely see this given in the questions, so just use the nominal as that will be given.
If this was going to be seen with us being required to use the effective rate then it would be more likely in SBR as opposed to FR. So, something to look forward to 😉
Thanks