Accounting treatment of convertible debentures
This query is : Open
10 March 2010
Dear all,
What is the accounting treatment of convertible debentures. Are they equity or debt? where is it placed in the balance sheet
What is the accounting treatment of convertible debentures. Are they equity or debt? where is it placed in the balance sheet
10 March 2010
Dear Indira,
Convertible Debentures are debt instrument. They are shown in liability side under the head Debentures.
Regards.
Convertible Debentures are debt instrument. They are shown in liability side under the head Debentures.
Regards.
10 March 2010
Thanks. But what about subordinate debt? I am actually looking for quasi equity instruments and their treatment. would be great to hear from u
13 March 2010
hi indira,
convertible debentures will be classified as a debt.
depending on the charge that you have created that will be classfied as a secured or unsecured debts.
the right to get them converted will be considered only at the time of caclulating the diluted EPS. and discloure should be made in the notes, all the terms of conversion.
convertible debentures will be classified as a debt.
depending on the charge that you have created that will be classfied as a secured or unsecured debts.
the right to get them converted will be considered only at the time of caclulating the diluted EPS. and discloure should be made in the notes, all the terms of conversion.
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