Entity A issues convertible bonds with face amount of P2,000,000 for P2,600,000. Each P1,000 bond is...
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Entity A issues convertible bonds with face amount of P2,000,000 for P2,600,000. Each P1,000 bond is convertible into 10 shares with par value of P60 per share. On issuance date, the bonds are selling at 102 without the conversion option. What is the value allocated to the equity component on initial recognition? Entity A issues convertible bonds with face amount of P2,000,000 for P2,600,000. Each P1,000 bond is convertible into 10 shares with par value of P60 per share. On issuance date, the bonds are selling at 102 without the conversion option. What is the value allocated to the equity component on initial recognition?
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The value allocated to the equity component on initial recognition is 600000 The convertible bonds a... View the full answer
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Posted Date:
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