It is difficult to separate the proceeds from a convertible bonds issue into debt and equity components. Based on some previous different approaches, there is a focus on the improved approach whose views are convertible bond issue proceeds can be separated into accrual debt value, accrual equity value and accrual option value according to the characteristics of debt, equity and hybrid securities with embedded option of convertible bonds. It is concluded that the improved approach can be more in accord with modern financial theory and provide a more accurate evaluation of capital structure. And there are some policy significances for Chinese Accounting Standards.
展开▼