Convertible debentures

This query is : Resolved 

30 October 2012 optionally convertible debentures issued by a company is to be treated as debt or equity in the books of the issuer company?
Whether the treatment will differ if the instrument issued is redeemable convertible preference shares ?

30 October 2012 The optionally convertible debentures will be treated as debt only and not equity.
This will be shown in the long term borrowings in the balance sheeet.



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