Convertible Note

Please, the issuing costs of convertible loan note , do we charge it to the profit and loss account?

Lets assume 6% convertible loan with a proceed of $30 million note with an issue costs of 1 million on the 1 Oct 2004. And the loan note will be redeemed say 30 Sept 2009 with effective rate of 9%. No repayment is due until 30 Sept 2009.

I will going to charge the $1 million to the SPF or SPL? Because the question say that in the drafted trial bal , this amount was charged to SPL account and need to be adjusted.