1. Background Information Mobi-Cell Ltd ("Mobi-Cell") is a mobile telecommunications company. It sells mobile phones, provides access to its mobile network 1, and sells voice minutes (airtime) and internet data (data) bundles. Airtime and data bundles are sold on both prepaid 2 and 12-month contracts. Mobi-Cell has begun preparations of its separate and group financial statements ahead of its 30 June 2023 year-end ("FY2023"). You have been tasked to assist in the accounting of some transactions brought to the attention of the financial reporting team. All the entities in the Mobi-Cell group have a 30 June year-end. 4. Investment in debentures On 1 July 2022, Mobi-Cell purchased 1000009% debentures in Welkom Ltd ("Welkom debentures") at their par value of R150 each. Similar debentures on 1 July 2022 earned 9.5% interest per annum in the market. Interest is payable annually in arrears on 30 June and the debentures will be redeemed at a premium of 10% of their par value on 30 June 2027 You correctly determined that the debentures are held within a business model that, with equal prominence, intends to both collect contractual cash flows and intends to sell the debentures if another investment with better returns is found. On 1 July 2022 and 30 June 2023, the debentures were not credit impaired and their associated credit risk was considered low. The expected credit losses ("ECL") for the 100000 debentures were as follows: The fair value of the debentures on 30 June 2023 was R16 million. Mobi-Cell's financial accountant is only familiar with the amortised cost classification of financial assets in accordance with IFRS 9 paragraph 4.1.2. As a result, he classified and measured the debentures at amortised cost in Mobi-Cell's FY2023 financial statements. He used the correct inputs when accounting for the Welkom debentures at amortised cost and correctly calculated and recognised the interest income and coupon payments. As he was unsure of the treatment of the ECL he did not process any journal entries relating to ECLs. Assume for the rest of the question that the Welkom debentures should be classified in accordance with IFRS 9.4.1.2A at falr value through other comprehens/ve come. Prepare the additional journal entries in Mobi-Cell's separate FY2023 financial statements to account for the Welkom debentures that Mobi-Cell's financial accountant has not yet prepared (see section 4 of the scenario). These journal entries must be to recognise the: - The fair value adjustment, and - The ECL. - Ignore all journal entries related to tax. Presentation