Home  Journals  International Accounting  8(542) - 2026 August

Valuation and recognition of investments in convertible bonds in international financial reporting

Received: 17 April 2026

Accepted: 13 August 2026

Available online: 27 August 2026

Subject Heading: INTERNATIONAL STANDARDS OF ACCOUNTING AND REPORTING

JEL Classification: G12, G15, M41

Pages: 4-21

https://doi.org/10.24891/riewhe

Subject. This article considers the accounting mechanism for formatting financial results of investments in convertible bonds in the financial statements of investment organizations in accordance with the International Financial Reporting Standards (IFRS) requirements. The focus is on the issues of accounting for investments and the relationship between results in different forms of financial reporting.
Objectives. The study aims to improve analytical tools to recognize the accounting of investments in convertible bonds that meet the IFRS requirements in the financial statements of investment organizations.
Methods. For the study, I used systems analysis, models of modern financial mathematics, situational interpretation and data visualization.
Results. As part of the developed accounting procedures, the article proposes a set of calculation algorithms for component-by-component initial assessment and subsequent revaluation of selected component-parts of this complex financial instrument in order to generate a number of key accounting indicators in accordance with IFRS. The practical application of the proposed methodological recommendations is illustrated through relevant practical examples based on observations of investor behavior and changes in market conditions.
Relevance. The research significance lies in the development of scientific and applied tools for evaluating and recognizing investments in convertible bonds, which can be used by Russian and international companies in the process of forming financial statements in accordance with IFRS.

Keywords: IFRS, hybrid financial instruments, convertible bonds, embedded option, valuation models

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