The University of Southampton
University of Southampton Institutional Repository

A re-examination of the case for accounting separately for the debt and equity features of convertible debt.

A re-examination of the case for accounting separately for the debt and equity features of convertible debt.
A re-examination of the case for accounting separately for the debt and equity features of convertible debt.
The case for accounting separately for the debt and equity features of a convertible bond is based on two main assumptions: convertible debt can be decomposed into two, or more, fundamental financial instruments, and a convertible bond has the same economic substance as a bond with a detachable warrant. These assumptions are re-examined in this paper where it is shown that it is generally not possible to decompose a convertible bond into fundamental financial instruments, nor is it possible to form a package of a bond and a detachable warrant that replicates the character of the convertible bond.
0306-686X
595-612
Casson, Peter
5ac137b1-dc94-41fb-82c5-736ad5be75c2
Casson, Peter
5ac137b1-dc94-41fb-82c5-736ad5be75c2

Casson, Peter (1998) A re-examination of the case for accounting separately for the debt and equity features of convertible debt. Journal of Business Finance & Accounting, 25 (5&6), 595-612. (doi:10.1111/1468-5957.00203).

Record type: Article

Abstract

The case for accounting separately for the debt and equity features of a convertible bond is based on two main assumptions: convertible debt can be decomposed into two, or more, fundamental financial instruments, and a convertible bond has the same economic substance as a bond with a detachable warrant. These assumptions are re-examined in this paper where it is shown that it is generally not possible to decompose a convertible bond into fundamental financial instruments, nor is it possible to form a package of a bond and a detachable warrant that replicates the character of the convertible bond.

This record has no associated files available for download.

More information

Published date: 1998

Identifiers

Local EPrints ID: 36841
URI: http://eprints.soton.ac.uk/id/eprint/36841
ISSN: 0306-686X
PURE UUID: bd6f02b0-dd47-4f10-931a-e0629d8d588d

Catalogue record

Date deposited: 20 Mar 2007
Last modified: 15 Mar 2024 07:57

Export record

Altmetrics

Contributors

Author: Peter Casson

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×