Izmir AS, issued convertible bonds at their face value of 128,000 lira on December 31,...
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Izmir AS, issued convertible bonds at their face value of 128,000 lira on December 31, 2017. The bonds have a 10-year life with interest of 14 percent payable annually. At the date of issue, the prevailing interest rate for similar debt without a conversion option was 16 percent. 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 Required: a. Prepare journal entries for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) US. GAAP b. Prepare the entryies) that the U.S. parent would make on the December 31, 2017, conversion worksheet to convert IFRS balances to U.S. GAAP. Complete this question by entering your answers in the tabs below. Required A Required B Prepare journal entries for this compound financial instrument for the year ending December 31, 2017, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required in the first account field. Do not round PV factor Round the final answers to nearest whole dollar.) View transaction list Journal entry worksheet
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