1 Ltd issued the following instruments for the nancial year ended 31 December 2014: 1. 9%-Convertible preference shares. These preference shares are compulsory convertible into ordinary shares on a 1:1 basis after 5 years. The preference dividends are non-cumulative. 2. 1U%-Redeemable preference shares. These preference shares pay compulsory. cumulative dividends and are compulsory redeemed in cash after 5 years. 3. 11%-Redeemable preference shares. These preference shares' dividends are under discretion of A Ltd and A Ltd can choose to redeem them after 5 years. 4. 12%-Redeemable preference shares. These preference shares pay compulsory. cumulative dividends. They will be redeemed after 5 years if A Ltd's net profit percentage has increased by at least 5% over the 5-year period. 5. 13%-Convertible debentures. The holder of these debentures has the choice to choose after 5 years that the debentures are redeemed in cash, or that they are converted into ordinary shares in A Ltd. 6. 14%-Debentu res. These debentures will never be redeemed. but pay 14% interest each year. 7. An entity issues 2 000 convertible bonds at the start of year 1. The bonds have a 3-year term and are issued at par with a face value of R1 000 per bond, providing total proceeds of R2 million. Interest is payable annually in arrears at a nominal annual interest rate of 6% (the coupon rate). Each bond is convertible at any time up to maturity into 250 ordinary shares. At the time the bonds were issued, the prevailing market interest rate for similar debt without conversion options was 9%. At the issue date. the market price of one ordinary share is R3. YOU ARE REQUIRED TO: 21 Classify each of the transactions between financial liabilities, equity or compound financial ' instruments in the records of A Ltd. Briey motivate your