Financial Instrument QWS issued a redeemable debt instrument on 1 July 2009 at its par value of R6 million. The instrument carries a fixed coupon interest rate of 6%, which is payable annually in arrears. The debt instrument will be redeemed for R6.02 million on 30 June 2013. Transaction costs associated with the issue were R200,000 and were paid at the time of issue. The effective interest rate applicable to this liability is approximately 7.06%. Complete: (i) Explain how this instrument will be initially and subsequently measured. (ii) Calculate the carrying value of the liability to be included in QWS's statement of financial position as at 30 June 2011. (Round all workings to the nearest R000) Pension plan QWS operates a defined benefit pension plan for its employees. At 1 July 2010 the fair value of the pension plan assets was R1,200,000 and the present value of the plan liabilities was R1,400,000. The interest cost on the plan liabilities was estimated at 7% and the expected return on plan assets at 4%. The actuary estimates that the current service cost for the year ended 30 June 2011 is R300,000. QWS made contributions into the pension plan of R400,000 in the year. The pension plan paid R220,000 to retired members in the year to 30 June 2011. At 30 June 2011 the fair value of the pension plan assets was R1,400,000 and the present value of the plan liabilities was R1,600,000. In accordance with the amendment to IAS 19 Employee Benefits, QWS recognises actuarial gains and losses in other comprehensive income in the period in which they occur. Complete: Calculate the net expense that will be included in QWS's profit or loss AND the amounts that would be included in other comprehensive income in respect of actuarial gains or losses for the year ended 30 June 2011.