9.5 Own-Share Lending Arrangement in Connection With a Convertible Debt Issuance

Under U.S. GAAP, there is special guidance on the accounting for equity-classified own-share lending arrangements executed in contemplation of a convertible debt issuance (see Chapter 8). That guidance requires such arrangements to be initially measured at fair value and recognized as an issuance cost, with an offset to APIC. There is no equivalent accounting guidance under IFRS Accounting Standards.