Company A issued convertible notes 3 years ago and accounted for them as a compound financial instrument. Complete the following:
At the end of the three year period the portion of the XXX component that relates to the notes which have been converted XXX.
A) equity, is transferred to profit & loss
B) liability, remains as a liability
C) liability, is transferred to equity
D) liability, is transferred to profit & loss

Question

Company A issued convertible notes 3 years ago and accounted for them as a compound financial instrument. Complete the following:
At the end of the three year period the portion of the XXX component that relates to the notes which have been converted XXX.
A) equity, is transferred to profit & loss
B) liability, remains as a liability
C) liability, is transferred to equity
D) liability, is transferred to profit & loss

Quizplus · Accepted Answer

The Answer is C

Company a Issued Convertible Notes 3 Years Ago and Accounted