The bifurcation of the proceeds from the issue of a complex financial instrument between debt and equity components will be the same, regardless of whether or not the conversion is mandatory.

Question

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The bifurcation of proceeds between debt and equity components can differ depending on whether the conversion feature of a complex financial instrument is mandatory or optional. Mandatory conversion features may lead to a different accounting treatment compared to optional conversion features, affecting how proceeds are allocated between debt and equity.

The Bifurcation of the Proceeds from the Issue of a Complex