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Consistent with IFRS, if the fair value of convertible bonds for which no active market exists cannot be determined, the value of the bonds can be calculated based on the
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Consistent with IFRS, if the fair value of convertible bonds for which no active market exists cannot be determined, the value of the bonds can be calculated based on the

User Zoker
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17 votes

Answer:

present value of the bonds' cash flows using the market interest rate.

Step-by-step explanation:

IFRS stands for International Financial Reporting Standards. It is a set of the accounting rules as well as standards which determines how the accounting level can be reported in the business statements.

The IFRS is restrictive to the fair value choice option for any financial assets and also the liabilities.

Consistent with the IFRS, the fair value of the convertible bonds can be determined by the present value of the cash flow of the bonds by using the interest rate of the market.

User Curie
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