Question
On July 1, 2023, Tien Limited called its 9% convertible bonds for conversion. The $10 million of par value bonds were converted into 1 million
On July 1, 2023, Tien Limited called its 9% convertible bonds for conversion. The $10 million of par value bonds were converted into 1 million common shares. On July 1, there was $75,000 of unamortized discount applicable to the bonds, and the company paid an additional $65,000 to the bondholders to induce conversion of all the bonds. At the time of conversion, the balance in the account Contributed SurplusConversion Rights was $270,000, and the bonds fair value (ignoring the conversion feature) was $9,955,000. The company records conversion using the book value method.
Prepare the journal entries if Tien prepares its financial statements using IFRS and if it uses ASPE.
Can someone please explain what the difference is between IFRS and ASPE and how they got the number in the journal entries, thanks!
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