debentures

Question 2 (a) ABC Limited issues a TZS 100 million 4% three year convertible debenture on 1 January 2021. The market rate of interest for a similar loan without conversion rights is 8%. The conversion terms are one equity share of TZS 1 for every TZS 2 of debenture. Conversion or redemption at par shall take place on 31 December 2023. Required: Split the proceeds as debt and equity elements separately. Prepare extracts of financial statements for all three years before conversion or redemption (iii) How should this be accounted for on 31 December 2023, if all holders elect for the conversion? (iv) How should this be accounted for on 31 December 2023, if no holders elect for the conversion