Blair Ltd. owns 100 bonds that can be converted into shares of Mac Ltd. with par value CU500 each bond. The historical cost is CU48,000 at the purchase date of 01/01/20x1. The bonds will mature at the date of 31/12/20x5. The nominal interest rate is 5% annually. The interest will be paid at the end of the period. Blair Ltd. must spend CU1,000 on a brokerage company to acquire this bond. Blair Ltd. intends to hold this investment until the maturity date and applies the accounting standards under IAS/IFRS. Required: (1) Recognize and measure the above bonds on 01/01/20x1 and 31/12/20x1. Assumed that, on December 31, 20x1, Blair Ltd. had no intention of converting bonds into ordinary shares. (2) Blair Ltds manager said that it is inappropriate to distinguish between hedging and trading activities for the purpose of reporting financial instruments in general purpose financial statements. Outline the arguments for and against this view.