Kindly assist me with the treatment of issuing costs for a covertible bond with the share option, Under IFRS 9, two test for classification, the convertible bond which has a third element apart from principle and interest, does not qualify under the contractual cash flow test. meaning it will be accounted for under FVTPL.
Do we deduct the issuing costs from the debt and equity component on an apportioned basis or we charge the expenses to P/L?