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1	BondLabrador
2	Accounting for the Life-Cycle Events of Bond Liabilities That Are Convertible Into Common Equity At The Issuer's Option ('Mandatory Convertibles'): Issuance; Interest Payments; Discount/Premium Amortization; Equity Accretion; Conversion.
3	BondLabrador's objective is to supplement textbooks teaching IFRS accounting for bond liabilities that are convertible into shares at the issuer's option at a specified exchange ratio.
4	Your feedback about BondLabrador will be used to improve it for future users. Please send comments to:
5	conheady@telfer.uottawa.ca
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7	Accounting for non-convertible bond liability life-cycle events, refer to:								bondbeagle.com
8	Accounting for bond liabilities convertible into common equity at the holder's option, refer to:								bondterrier.com
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10	BondLabrador deals with:
11	·        The application of IAS 32 & IFRS 9 to accounting for the life-cycle events of bond liabilities that can be converted at a specified price or exchange ratio into common equity at the issuer's option, including: issuance; interest payments; interest expense; accretion of the equity element, and conversion.
12	·        splitting (bifurcating) the bond issuance proceeds between the liability and equity elements, and accounting for both of these elements subsequent to the bond issuance date and up to and including the conversion date (if any).
13	·        Scenarios where the convertible bond's coupon (nominal) rate differs from the effective interest rate (yield) on similar bonds that are not convertible.
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15	BondLabrador does not deal with:
16	·       Accounting for non-convertible bond liability life-cycle events: see BondBeagle at								bondbeagle.com
17	·        Accounting for the life-cycle events of bond liabilities that are convertible into common equity at the holder's
18	option. See BondTerrier at			bondterrier.com
19	·        Defeasance.
20	·        Serial bonds.
21	·        Troubled debt restructuring.			bomode.telfer.uottawa.ca/tdr/tdr_sheet.aspx
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23	Constraints:
24	·        1, 2 or 4 interest payments, in cash, per year.
25	·        Maximum of 20 interest payment periods.
26	·        Assumes both issuance and conversion occur on interest payment dates.
27	·        Assumes the percent of bonds converted = 100%.
28	·        Ignores bond issuance costs.
29	·        The stated (nominal) interest rate must be >= 0%.
30	·        The effective interest rate (yield) must be >= 0%.
31	·        Assumes the effective-interest-rate method of amortization is employed.
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33	BondLabrador output:
34	BondLabrador provides journal entries and supporting explanations in accordance with IFRS for bond life-cycle events including issuance, interest payments, interest expense, accretion of the equity element, and mandatory conversion. BondLabrador demonstrates how the bond issuance proceeds are split between the liability and equity components, and the subsequent accounting for each of these elements. Detailed amortization tables are also generated.
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36	BondLabrador Copyright (c) Brian A. Conheady. [For educational use].
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