On January 1, 2020 company issued $ 1.5 million of five year, 6% convertible bonds at par value. Each $ 1000 bond is convertible into 100 common shares. A similar bond (without conversion feature) would have been issued at a market yield of 9%. In the same year on December 31, $ 2000,000 worth of bonds were converted to common shares.

Required: Calculate the value of the bond according to IFRS and ASPE and also show the journal entries. The measurement of the bond should be done according to IFRS and ASPE. Does this has any effect on the debt to equity ratio of the company.