c) On 1 January 20X4 Maroon plc issued 100,000 1 6% convertible redeemable preference shares. Issue costs of 6,700 were incurred and the preference shares are redeemable at par for cash on 31 December 20X8 or are convertible into 20,000 new 1 ordinary shares at that time. The preference dividend is paid on 31 December each year. The interest rate on similar financial instruments without the convertibility option is 8%. The impact of the issue costs is to increase the effective interest rate to 9.7%. Required: Prepare extracts from Maroon plc's financial statements for the year ended 31 December 20X4 on the basis that the convertible preference shares are accounted for: In accordance with their legal form In accordance with IAS 32 Financial Instruments: Presentation (1) (ii)