On 1 January 2016, Tetra Bhd issued 1,000,000 convertible loan stock at face value of RM200,000,000. Transaction cost amount to RM2,000,000. The interest is payable at the end of each year over the term of three year at a rate of 6% per annum. The loan stock is convertible into ordinary shares or redeemable at par in three years time. The conversion option and the transaction cost attracted an interest rate of 9% per annum on 1 June 2016. At maturity, all the loan stock were converted into 50 million ordinary shares of RM1 of Tetra Bhd. No loan stock could be converted before that date. The directors are uncertain how the bonds should have been accounted for up to the date of the conversion on 31 May 2019. Required: Discuss with relevant computations how the above should be accounted for in the financial statements for the year ended 31 May 2019