Company A issued convertible notes 3 years ago and accounted for them as a compound financial instrument. Complete the following:

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.

Select one:

a. liability, remains as a liability. 

b. liability, is transferred to profit & loss.

c. liability, is transferred to equity.

d. equity, is transferred to profit & loss.