What is the principle of accounting for a compound instrument (e.g., an issued convertible debt instrument)?
(a) The issuer shall classify a compound instrument as either a liability or equity based on an evaluation of the predominant characteristics of the contractual arrangement.
(b) The issuer shall classify the liability and equity components of a compound instrument separately as financial liabilities, financial assets, or equity instruments.
(c) The issuer shall classify a compound instrument as a liability in its entirety, until converted into equity, unless the equity component is detachable and separately transferable, in which case the liability and equity components shall be presented separately.
(d) The issuer shall classify a compound instrument as a liability in its entirety, until converted into equity.