Novra Technologies Inc V.NVI

Accounting for Convertible Debt agreement

[Stonksonlyup90]

How will the accounting for this debt transaction look?

If chances are good that either Lendee or Lender will force conversion to shares, then presumably will show up on the Balance Sheet as an Equity component (rather than Liability)

[Ciao]

"Here is how to record a convertible note on the balance sheet: Classify the convertible note as a long-term liability on the balance sheet. The note represents a future obligation to repay the debt or convert it into equity shares. Record the full face value of the note under long-term liabilities." https://www.vintti.com/blog/convertible-securities-accounting-treatment#:~:text=Here