On the Regulations of Perfecting the Accounting Treatment of Convertible Bond

Both of convertible bonds and separation of trading convertible bonds involve debt financing and equity financing.And they also bear the financial risks of repaying capital and interest.While they have some differences in several factors such as the feature of law,way of financing,method of issuing price and financing cost.Accounting Standard for Business Enterprises only regulates the accounting treatment of convertible bonds,so it's necessary to make additional rules on enterprises issuing warrants and separation of trading convertible bonds.