For each of the following situations, identify whether the financial instrument should be reported as a liability, equity, or part liability $/$

part equity. Assume IFRS rules are to be followed.

$($a$)10-$year, $6\%$ bonds, issued with $5$ detachable warrants per bond. Each warrant allows the

holder to purchase $10$ of the company's common shares.

$($b$)A$$$100,000$ perpetual bond that pays $4\%$ annual interest.

$($c$)$ Preferred shares, non$-$convertible, $5\%$ cumulative dividend, issued April $1,2023,$ with

mandatory redemption on March $31,2031.$

$($d$)10-$year, $4\%,$ convertible bonds issued at $1\mathrm{.}03.$ Without conversion rights the bonds would

have been issued at par. Each bond is convertible to $20$ common shares.

eTextbook and Media

Attempts: $0$ of $15$ used