Nitrus Sdn Bhd issued RM2m 6% convertible loan notes on 1 April 2020. The convertible loan notes are redeemable on 31 March 2023 at par for cash or can be exchanged for equity shares in Nitrus Sdn Bhd on that date. Similar loan notes without the cnversion option carry an interest rate 9%. The following table provides about discount rates: Year 1 6% 0.943 Year 2 0.89 Year 3 0.84 9% 0.917 0.842 0.772 On 1 April 2021, Nitrus purchased RM50,000 RM1 ordinary shares in PopLook Sdn Bhd at RM4 per share, incurrying transaction costs of RM4,000. The intention is to hold the shares for trading. By 31 March 2022 the shares are trading at RM7 per share. In addition to the gain on investment, Nitrus also received a dividend from PopLook during the year to 31 March 2022. Nitrus Sdn Bhd held a portfolio of trade receivables with a carrying amount of RM4m at 1 April 2023. At that date, the entity entered into a factoring agreement with a bank, whereby it transferred the receivables in exchange for RM3.6m in cash. Nitrus has agreed to reimburse the factor for any shortfall between the amount collected and RM3.6m. Once the receivables have been collected, any amounts above RM3.6m, less interest on this amount, will be repaid to Nitrus. Nitrus has derecognised the receivables and charged RM0.4m as a loss to profit or loss. Required: a. Explain how convertible loan notes are initially recognised, in accordance with MFRS 132 Financial Instruments: Presentation, and prepare the journal entry to record the issue of the convertible loan notes by Nitrus Sdn Bhd. (5 marks) b. Explain how the convertible loan notes will be measured subsequently, in accordance with MFRS 139 Financial Instruments: Recognition and Measurement, and prepare an extract of the statement of financial position of Bistari Bhd as at 31 March 2021 that illustrate how the bonds will be presented. (5 marks) C. Show the journal entry for investment in equity (ordinary shares) in PopLook Sdn Bhd according to MFRS 9 Financial Instrument. Prepare an extract of statement of financial position of Nitrus Sdn Bhd to illustrate the investment in equity should be presented. d. (5 marks) Outline the rules in MFRS 9 Financial Instruments relating to the derecognition of a financial asset and discuss how these rules affect the treatment of the portfolio of trade receivables in Nitrus's financial statements