Issue costs on covertible debentures

Ppenelope5y ago

Hi, how are issue costs treated in convertible debentures. I have just done a question and the answer has split the issue costs between equity and liability, after finding the liability and equity balances

stephenwidbergTutor5y ago#1

That's correct. Calculate the debt / equity split then pro-rate the issue costs.

Sign into reply to this topic.