Aquaria Limited purchased a five-year bond on 1 January 2017 at a cost of €5m with annual interest of 5%, which is also the effective rate, payable on 31 December annually. At the reporting date of 31 December 2017 interest has been received as expected and the market rate of interest is now 6%.

Requirement Account for the financial asset on the basis that it is classified:

(a) as FVTPL; and

(b) to be measured at amortised cost, on the assumption it passes the necessary tests and has been properly designated at initial recognition.