Question: Bridgewater Corp offered holders of its 1 000 convertible bonds a premium
Bridgewater Corp. offered holders of its 1,000 convertible bonds a premium of €160 per bond to induce conversion into ordinary shares. Upon conversion of all the bonds, Bridgewater Corp. recorded the €160,000 premium as a reduction of Share Premium—Ordinary. Comment on Bridgewater’s treatment of the €160,000 “sweetener.”
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