I want to know that whether Compulsory Convertible Debentures (CCDs) having buy/put option are debt or Equity. Also please provide any supporting for the answers.
19 July 2016
Till the time of conversion, it is DEBT. Once converted into equity, it becomes equity. (The answer is from the view point of accountancy.) For a banker, the company may argue, that since it is compulsory covertible, please treat it as equity
CAclubindia
