CERTYNEX IFRS ACADEMY

A company has issued a bond convertible into ordinary shares, not yet converted. How does IAS 33 characterise this instrument?

A potential ordinary share, that is, an instrument that may entitle its holder to ordinary shares.

An ordinary share, that is, an equity instrument subordinate to the other classes of equity instruments.

An option or a warrant, that is, an instrument giving its holder the right to buy ordinary shares.

A contingently issuable ordinary share, that is, a share issuable for little or no consideration when the conditions of an agreement are met.