a) IFRS 9: Financial Instruments The Company issued 22% GHS50 million 4 year Corporate Bond at a discount of 5% on 1 January 2020. Issue costs were GHS1,534,000. The Bonds would be redeemed on 31 December 2023 at par. Interests are paid annually in arrears at 31 December and the effective interest rate is thus determined as 25% per annum. b) IAS 23: Borrowing Costs The Company borrowed GHS24 million from Classic Bank on 1 January 2020 at an interest rate of 20% per annum specifically to build a new Administration Block. The contract price agreed with the Contractor was GHS24 million. The construction commenced in the first week of January 2020. The payment schedule agreed between the Company and Consar Ltd was as follows: 1 January 2020 [GHS4 million], 1 April 2020 [GHS8 million]; 1 October 2020 [GHS8 million]; and 31 December 2020 [GHS4 million]. The Company decided to invest idle funds of the borrowed money temporary in fixed deposit at annual interest rate of 15%. The building was completed in the last week of December 2020 and put to use on 2nd January 2021. c) IAS 16: Property, Plant and Equipment The Company constructed a Waste Disposal Plant in January 2020 at a cost of GHS50 million . It was agreed with the owner of the plant site that the plant would be de-commissioned in

December 2022 (after three years of usage). The Engineers of the Company estimate the de- commissioning costs to be GHS1 million in December 2022. (The annual cost of capital to the

Company is taken to be 25% ). d) IAS 40 : Investment Property The Company acquired a property on 1 January 2015 at a cost of GHS200,000 and immediately occupied it as office premise. On acquisition, it was estimated to have a useful life of 50 years. Subsequent to its acquisition, the asset was measured at depreciated cost until 1 July 2020 when Management decided to convert the building into an investment property (mainly for rentals). Following this decision, the property was fair valued at GHS 190,000. QRS adopted the fair value model for subsequent measurement of the investment property. At 31 December 2020, it was fair valued at GHS195,000. e) IAS 38: Intangible Assets The Company adopts fair value model for subsequent measurement of its intangible assets. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2019 for GHS450,000. It was revalued to GHS544,000 on 31 December 2019 and the revaluation surplus was correctly recognized on that date. As at 31 December 2020, the intangible asset was revalued at GHS320,000 Required

Explain (together with relevant calculations) how each of the above transactions would be dealt with in the 2020 statement of profit or loss and the statement of financial position as at 31 December 2020 [with reference to respective IFRS)