Financial instruments can be real or virtual documents representing a legal agreement involving any kind of monetary value. Equity-based financial instruments represent ownership of an asset. Debt-based financial instruments represent a loan made by an investor to the owner of the asset. Our services cover the following instruments:

IFRS 13

Fair Value Measurement

IFRS 9

Financial Instruments

IFRS 2

Share-based Payment

IAS 32

Financial Instruments: Presentation

IAS 39

Financial Instruments: Recognition and Measurement

Convertible Bonds Valuation

A convertible bond is a type of debt security that can be converted into a predetermined amount of the underlying company’s equity at certain times during the bond’s life, usually at the discretion of the bondholder. Convertible bonds are a flexible financing option for companies and are particularly useful for companies with high risk/reward profiles.

Stock dividend yield =

stock dividend

stock price

Conversion ratio =

convertible market price

conversion price

Conversion value =

stock price

conversion ratio

Other Variables

stock price

stock dividend

convertible market price

maturity (years)

conversion price

  • Dividend rate
  • Liquidation preference
  • Put options
  • Cumulative versus noncumulative dividends
  • Redeemable versus nonredeemable