Evaluate the total bond proceeds

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Reference no: EM1376719

Q. In May 2011, French Real Estate Company issued convertible bonds with a net face value of 480 million. Each 1,000 bond added a conversion option whose fair value was predictable at 13. The average proceeds per 1,000 bond was 1,028.

a. Evaluate the total bond proceeds.
b. What portion of bond proceeds is accounted for as debt under IFRS?
c. Had company reported under U.S. GAAP what amount of bond proceeds would be accounted for as debt?

Reference no: EM1376719

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