When Cheery records interest expense on December 31,2015 the entry will include

A) A debit to interest expense for €25 million.
B) A credit to convertible notes payable for €12.5 million.
C) A debit to convertible notes payable for €17.5 million.
D) A credit to convertible notes payable for €5 million

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Convertible Notes

Debt securities that can be converted into a predetermined number of the issuer's equity shares, usually at the option of the holder.

Interest Expense

The cost incurred by an entity for borrowed funds, generally calculated as the interest rate times the principal amount of the debt.