Chapter 14, Problem 14.27E

To determine

Convertible bond

Convertible bonds are a kind of bonds that can be converted into common stock at the option of the bondholder.

International Financial Reporting Standards (IFRS)

They are commonly known as IFRS. These are set of accounting standards which are developed by independent (Non-profit) organization called as International Accounting Standards Board (IASB). These are universally accepted set of standards which state the rules and procedures for accounting at global level.

To Prepare: The journal entry to record the issuance of convertible bonds of Products M under International Financial Reporting Standards (IFRS) using the net method.