Refer to the situation described in E 14–24.

Required:
How might your solution to requirement 1 for the issuer of the bonds differ if Gless Textiles prepares its financial statements according to International Financial Reporting Standards? Include any appropriate journal entry in your response.

E 14–24

On January 1, 2021, Gless Textiles issued $12 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 10% of the issue as an investment.