Conversion of loan to equity

[Nikt]

IFRS 9 states derecognition of financial liabilities goes to P&L. But in case of conversion of loan to equity in the form of shareholder contribution, will it be Loan Dr & Reserves Cr (both effects in balance sheet) or will it be Loan Dr & P&L Cr (income increases in that year due to credit to P&L)?

[Marek Muc]

See https://ifrscommunity.com/knowledge-bas ... uity-swaps