a) Hotspur plc ("Hotspur") is currently preparing its financial statements for the year ended 31 December 2021. On 1 January 2021 Hotspur raised additional finance through the issue of 2,000,000 of 8% convertible loan stock. Interest is payable annually in arrears on 31 December. The loan stock can be converted into ordinary shares on 31 December 2023. Otherwise the loan stock will be redeemed at par on 31 December 2023 The rate of interest currently being paid on equivalent loan stock without a conversion option is 10% The discount factors at the end of each year, based on discount rates of 8% and 10%, are as follows: Year 8% 10% 1 0.926 0.909 2 0.857 0.826 3 0.794 0.751 Required 0) Applying the principles of IAS 32 Financial Instruments: Presentation, explain how the convertible loan stock should be classified and reported in Hotspur's financial statements including the basis of measurement (6 marks) Calculate the finance cost to be shown in the Statement of Profit and Loss and the carrying values at which the convertible loan stock should be reported in the Statement of Financial Position for the year ended 31 December 2021. (9 marks)