A working paper comments on the issue of a convertible bond. Which of its conclusions is wrong?Your answerAIf the liability component is below the nominal amount repayable, the gap is an issue gain in profit or loss.BThe sum of the two components recognised at inception is equal to the proceeds of the issue of the instrument, with no gap or gain to recognise at that stage.CSeparate recognition of the liability and equity components generates no gain or loss at inception.DThe equity component is the residual amount that brings the total to the proceeds of the issue.SubmitHint