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Davidson & Company - Ask Bahar - Convertible Debentures

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Davidson & Company’s Bahar Saadat and Erez Bahar discuss convertible debentures in this short video. A convertible debenture is a type of loan issued by a company that can be converted into stock of that company, most commonly at the option of the holder. Under IFRS, the Company is required to disclose the value of the debt and equity portions of the debenture separately, this separation is known as bifurcation. The debt is initially measured at its fair value based on the present value of cash flows which takes into account the interest expense, market interest rate and maturity date of the debt. The accretion expense brings the value of the bond to its face value at the maturity date.

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Company: Davidson & Company
Date Published: May 5, 2014