You are a CPA working on the Seneca audit file. You received an email from your manager informing you that the accountant at Seneca was unfamiliar with IFRS treatment for the Bond. He asked you to send an email to the accountant to explain to him how to record the transaction and the treatment and why On January 1, 2021, Seneca Ltd. A publicly traded company issued $500,000 of convertible bonds. The bonds mature on December 31, 2025. Interest is payable annually at 6.0% on December 31. The bonds are convertible at the investor's option at the rate of 20 common shares for each $1,000 bond. Similar bonds without the conversion option were selling for $475,000 at the time of issuance. Transaction costs of $10,000 were incurred.
B3.
You are a CPA working on the Seneca audit file. You received an email from your manager informing you that the accountant at Seneca was unfamiliar with IFRS treatment for the Bond. He asked you to send an email to the accountant to explain to him how to record the transaction and the treatment and why On January 1, 2021, Seneca Ltd. A publicly traded company issued $500,000 of convertible bonds. The bonds mature on December 31, 2025. Interest is payable annually at 6.0% on December 31. The bonds are convertible at the investor's option at the rate of 20 common shares for each $1,000 bond. Similar bonds without the conversion option were selling for $475,000 at the time of issuance. Transaction costs of $10,000 were incurred.
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