I only need answers for the following two questions!

(a) iii and (b):

(a) iii: Set out the appropriate financial reporting treatment of the 25 million loan in ADVENTs summary forecast financial statements for the year ending 31 December 2022. Include correcting journal entries. b) Prepare a revised summary forecast statement of financial position for ADVENT for the year ending 31 December 2022 which includes your adjustments from a) above.

PART B The CEO has provided you with the following summary projected statement of financial position: Summary forecast statement of financial position as at 31 December 2022 000 80,000 ASSETS Non-current assets Property, plant and equipment Current assets Trade receivables Cash and cash equivalents 35,325 8,322 43,647 123,647 Total assets 20,000 EQUITY AND LIABILITIES Share capital and share premium Retained earnings at 1 January 2022 Add: Profit for the year ending 31 December 2022 Retained earnings at 31 December 2022 45,300 20,039 65,339 85,339 25,000 Long-term liabilities 15-year bank loan Current liabilities Trade and other payables Total equity and liabilities 13,308 123,647 REQUIRED: a) The CEO is unsure how to account for the 25 million bank loan and has included the arrangement fee of 250,000 in finance costs in the statement of profit or loss for the year ending 31 December 2022. The first cash interest payment for the loan for the year ending 31 December 2022 will be made on 1 January 2023. No adjustments have been made for interest on the loan in the forecast financial statements for the year ending 31 December 2022. i) Explain the possible IFRS treatment of bank loans. (630 words max., 14 marks) 3 ii) Explain how ADVENT has incorrectly recorded the loan in its summary forecast financial statements for the year ending 31 December 2022. (270 words max., 6 marks) iii) Set out the appropriate financial reporting treatment of the 25 million loan in ADVENT's summary forecast financial statements for the year ending 31 December 2022. Include correcting journal entries. (18 marks) b) Prepare a revised summary forecast statement of financial position for ADVENT for the year ending 31 December 2022 which includes your adjustments from a) above. (12 marks)