CERTYNEX IFRS ACADEMY

A closing file comments on the subsequent accounting for a convertible bond that has already been split. Which of its conclusions is wrong?

The initial allocation between the liability component and the equity component is not revised later, even if market conditions change.

The liability component is measured after inception under IFRS 9, whereas the equity component is not remeasured.

At each reporting date, the equity component is remeasured at fair value, the change being recognised in profit or loss.

IAS 32 deals with classification and the split; the measurement of the financial liability falls under IFRS 9.