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Assume that a foreign company using IFRS is owned by a company using US GAAP. Thus, IFRS balances must be converted to US GAAP to prepare consolidated financial statements. Ignore income taxes.
Izmir AS issued convertible bonds at their face value of lira on December The bonds have a year life with interest of percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was percent.
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Prepare journal entries for this compound financial instrument for the year ending December under IFRS and US GAAP. Abbreviated PV Table
Prepare the entryies that the US parent would make on the December conversion worksheet to convert IFRS balances to US GAAP. Abbreviated PV Table
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