Hi, need help with this question to understand. Thanks

Convertible Bonds, bonds that allow the owner to convert the bond into an equity security such as stock, has been the subject of disagreement between U.S. GAAP and IFRS. Under U.S. GAAP, such securities (which do not have a beneficial conversion option) should be accounted for strictly as debt. Under IFRS, the price of the bond issue is allocated between the debt component and the equity component. Those in favor of the U.S. GAAP method argue that it is too difficult to accurately allocate what is debt and what is equity.

Those in favor of the IFRS method argue it is a more accurate representation. Which do you feel is the best way to account for Convertible Bonds?