How should ace allocate proceeds received among components

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In deciding how to account for the issuance of the MEDS, address the following issues:

• Should the various components of each MEDS be accounted for separately? If so, how should Ace allocate the proceeds received among the components?

• Should each MEDS (if accounted for as one unit of account) or the components of the MEDS (if accounted for separately) be accounted for as a derivative, or should any embedded derivatives be accounted for separately.

Reference no: EM131104749

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