Use the Following Information for Questions 36-37

question 61

Multiple Choice

Use the following information for questions 36-37.
On January 2, 2020, Perseus Corp. issued 10-year convertible bonds at 105. During 2021, all the bonds were converted into common shares having a total value equal to the total face amount of the bonds. At conversion, the market price of Perseus's common shares was 50% above its average carrying value. Perseus adheres to IFRS.
-At issuance, the cash proceeds from the issuance of these bonds should be reported as

• A) contributed surplus for the entire proceeds.
• B) contributed surplus for the portion of the proceeds attributable to the conversion feature and as a liability for the balance.
• C) a liability for the present value of the bonds and contributed surplus for the balance.
• D) a liability for the entire proceeds.

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Definitions:

Flexible Benefits Plan

A benefits plan that allows employees to choose from a variety of pre-tax benefit options based on their specific needs, such as healthcare, retirement savings, and childcare.

Benefit Format

The structure or manner in which employee benefits are organized, offered, and communicated within an organization.

Employment Insurance

A government program offering temporary financial assistance to unemployed workers who meet certain eligibility criteria.

Legally Required

Mandates or obligations imposed by law that individuals, organizations, or entities are required to follow.