Question
XYZ Ltd issues five-year interest-bearing bonds. The bonds are convertible to a fixed number of equity instruments of the issuer at the discretion of the
XYZ Ltd issues five-year interest-bearing bonds. The bonds are convertible to a fixed number of equity instruments of the issuer at the discretion of the holder.
How should the bonds be classified under IAS 32?
Instrument having equity and liability components
As equity
As liability
Neither equity nor liability
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
