How is the subsequent conversion of bonds into common shares recorded under IFRS?
A)Book value.
B)Market value.
C)Fair value.
D)Historical value.

Question

Quizplus · Accepted Answer

When bonds are converted into common shares under IFRS, the conversion is recorded at the book value of the bonds being converted. This approach does not recognize any gain or loss in the income statement at the time of conversion.

How Is the Subsequent Conversion of Bonds into Common Shares