Discuss the implications for a business

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Question - When an entity issues a financial instrument, it has to determine its classification either as debt or as equity. The result of the classification can have a significant effect on the entity's reported results and financial position.

Discuss the implications for a business if a substance approach is used for the reporting of convertible bonds. Explain what is meant by the term split accounting when applied to convertible bonds.

Reference no: EM132546769

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