CA-5.1.3
Convertible debt
(a) The first date at which the conversion may take place is less than three months ahead, or the next such date (where the first date has passed) is less than a year ahead; and
(b) The convertible is trading at a premium of less than 10%, where the premium is defined as the current marked-to-market value of the convertible less the marked-to-market value of the underlying equity, expressed as a percentage of the latter.
In other instances, convertibles should be treated as either equity or debtsecurities , based reasonably on their market behaviour.
In other instances, convertibles should be treated as either equity or debt
October 07