Conversion value and Deferred income: Difference between pages

Revision as of 10:14, 29 November 2014

Accounting.

Income for which payment has been received by the business but which has not yet been earned.

Deferred income is recorded as a credit balance in the balance sheet. (The related accounting entries being DEBIT Cash and CREDIT Deferred income.)

For reporting presentation purposes it is often aggregated with Accruals as 'Accruals and deferred income'.

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-''Convertible bonds''.
+''Accounting''.
-The total current market value of the ordinary shares (or other securities) for which each convertible bond may be exchanged (at the bondholder's option).
+Income for which payment has been received by the business but which has not yet been earned.
+Deferred income is recorded as a credit balance in the balance sheet.  (The related accounting entries being DEBIT Cash and CREDIT Deferred income.)
+For reporting presentation purposes it is often aggregated with Accruals as 'Accruals and deferred income'.
-For example, if each convertible bond may be exchanged for 40 ordinary shares, and the ordinary shares are currently trading in the market at £2 each, then the conversion value = 40 x £2 = £80.
 == See also ==
-* [[Convertible bonds]]
+* [[Accrual]]
+* [[Income]]
+* [[CertICM]]