Which of the Following Is/are Not True

question 164

Multiple Choice

Which of the following is/are not true?

• A)Firms sometimes issue bonds with stock warrants attached and allocate the amount received between the bonds and the warrants based on their respective fair values.
• B)When firms issue convertible bonds U.S.GAAP requires firms to allocate the full issue price between the bonds and the conversion feature.
• C)IFRS requires firms to allocate the issue price between the bonds and the conversion feature.
• D)Under IFRS, the firm allocates the issue price of bonds with terms similar to those issued but without the conversion feature to the bonds and the remainder of the issue price to the conversion option.
• E)all of the above

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Definitions:

Draft

A preliminary version of a document or plan that is subject to review and revision before being finalized.

Ordered

A directive issued by a court or other authority mandating or forbidding some action.

Allonge

Accompanying a negotiable instrument, a piece of paper that provides room for an endorsement if no room is available on the instrument itself.

Instrument

A legal document that formalizes an agreement or right, such as a contract, will, or financial instrument.