U.S. GAAP always allocates proceeds from issuing convertible bonds between a debt component and an equity component.

Name: U.S. GAAP always allocates proceeds from issuing convertible bonds between a debt component and an equity component.
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Under U.S. GAAP, convertible bonds are typically accounted for as a single liability unless they have a beneficial conversion feature or are issued at a substantial premium, in which case the proceeds may be allocated between debt and equity components.

US GAAP Always Allocates Proceeds from Issuing Convertible Bonds Between