1. A company that is a long-term investor reports its financial instruments under IFRS.

1. On 1 January 2018, the company issued a five-year bond that it accounts for at amortised cost using the effective interest rate method under IFRS 9.

The bond has a par value of 1,250 and a coupon rate of 4.7% payable annually on 31 December. The market interest rate is 10% and the bond was issued for 1,000.

You are required to:

1. State why the bond was issued at a discount
2. Calculate the interest payable that was recognized in the Income Statement as a finance cost for year ended 31 December 2018
3. Calculate the amortised cost of the bond recognized as a liability in the balance sheet at 31 December 2018

2. The companys balance sheet at 31 December 2018 contained financial assets held at fair value through other comprehensive income reported under non-current assets.

1. Explain what the classification fair value through other comprehensive income means
2. Give an example of a financial instrument that can be accounted for in this way under IFRS 9, Financial Instruments
3. Explain why this classification might be used by long-term investors

3. The company has heard of integrated reporting and believes it might be interesting to use it. Suggest two benefits for this company of using integrated reporting