How are the proceeds from issuing a compound instrument allocated between the liability and equity components?
(a) First, the liability component is measured at fair value, and then the remainder of the proceeds is allocated to the equity component (with and without method).
(b) First, the equity component is measured at fair value, and then the remainder of the proceeds is allocated to the liability component (with and without method).
(c) First, the fair values of both the equity component and the liability component are estimated.
Then the proceeds are allocated to the liability and equity components based on the relation between the estimated fair values (relative fair value method).
(d) The equity component is measured at its intrinsic value. The liability component is measured at the par amount less the intrinsic value of the equity component.