Refer to the situation described in E 14-26. In E 14-26. On January 1, 2018, Madison Products

Question:

Refer to the situation described in E 14-26.
In E 14-26.
On January 1, 2018, Madison Products issued $40 million of 6%, 10-year convertible bonds at a net price of $40.8 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method.
On June 1, 2020, Madison notified bondholders of its intent to call the bonds at plus a 1% call premium on July 1, 2020. By June 30, all bondholders had chosen to convert their bonds into shares as of the interest payment date. On June 30, Madison paid the semiannual interest and issued the requisite number of shares for the bonds being converted.
Required:
How might your solution for the issuer of the bonds differ if Madison Products prepares its according to International Financial Reporting Standards? Include any appropriate journal entries in your response.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...