At the beginning of the current year, the company issued $2.5 million convertible bonds, of which $2 million was correctly allocated to debt. The bonds market yield is 4% annually, pays interest semi-annually, matures in five years, and can be converted into common shares at the ratio of 1,500 shares per $1,000 bond.

Account for this under the IFRS framework. Show journal entries, supporting calculations and explain any financial statement impact or other issues.