What is the appropriate treatment for convertible notes in accordance with IAS 32 Financial Instruments: Presentation?
A)as a financial liability
B)as equity
C)as part debt and part equity
D)as a financial liability and disclosure of conversion option

Question

Quizplus · Accepted Answer

Convertible notes are treated as compound financial instruments under IAS 32, meaning they have both a liability component (the obligation to repay the debt) and an equity component (the option to convert into equity).

What Is the Appropriate Treatment for Convertible Notes in Accordance