IAS 32Chapter 4Lesson 2
After issue: interest, coupons, conversion at maturity and links with IFRS 9 and IAS 33
Step 1 of 7Learning objectives
Go deeper+2 deeper insights · +1 point of attention
Each year, the liability component increases by the interest charge at the rate used at inception and decreases by the coupon paid; at maturity, a conversion reclassifies the liability to equity with no gain or loss; IFRS 9 measures the liability and IAS 33 deals with dilution.
45 minNot started
Learning objectives
- Calculate the period's interest charge on the liability component and its closing carrying amount.
- Account for the interest charge and the payment of the coupon on the liability component.
- Account for the conversion at maturity of the liability component into equity and calculate total equity after conversion.
- Distinguish the classification questions for IAS 32 from the measurement questions for IFRS 9, and explain why the equity component is not remeasured.
- Identify the items of a compound instrument that enter the numerator and denominator of diluted earnings per share.