On January 1, 2020 company issued $ 2.5 million of six year, zero interest-bearing notes along with warrants to buy 1.25 million common shares for $ 10 per share. The company received $ 1.9 million for the notes and warrants. If offered alone, the notes would have been issued to yield 9% to the creditor. The warrants are valued at $ 550,000 with an option pricing model.

Required: Consider all the different scenarios of the question and calculate the value of the note under different conditions (with the warrants and without the warrants). The values should be calculated by following the both the GAAP's i.e. IFRS and ASPE. Clearly specify that how under ASPE and IFRS the value of the note will be calculated. Aslo show the related journal entries by showing calculations. Does this note has any effect on the debt to equity ratio of the company.