2. A Ltd acquired 200 8% Eskom bonds (par-value of R10 000) for R2 000 000 on 1 January 2007. A

Ltd sold 80 of these 8% Eskom bonds to C Ltd on 1 April 2008 for 101%. Interest on the bonds are

payable in arrears annually on 31 December. The bonds traded at 101.8% at 30 June 2008

(30 June 2007: 101.1%).

A Ltd remeasures its investment in bonds to fair value before each disposal. Assume that any

decreases in fair value are temporary.

A Ltd classified these bonds as "at fair value through profit and loss (P/L)".

No transaction cost was incurred on any of the above transactions