Convertible notes are:
A)essentially the same as debentures and need to be recorded as liabilities.
B)a form of asset.
C)are often referred to as hybrid securities and should be recorded as equity as they will eventually be converted into shares.
D)part debt and part equity and should be disclosed as such according to IAS 32.

Question

Quizplus · Accepted Answer

Convertible notes are considered to have characteristics of both debt and equity. Therefore, they are recognized as part debt and part equity and should be disclosed as such according to IAS 32.

Convertible Notes Are