On 1 January 2019, Nest plc issued 100,000 1 6% convertible redeemable preference shares, incurring issue costs of 6,700. The preference shares are redeemable at par for cash on 31 December 2023 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%

. Requirement Discuss the usefulness of the presentation requirements of IAS 32 Financial Instruments: Presentation in understanding the nature of the preference shares referred to above and how the requirements of IAS 32 affect the view presented.

(b) 'At the heart of IFRS 13 is a distinctive concept of the market. This is consistent with the accounting as economics metaphor, with its emphasis on current market prices as a guide to economic decision-making' (Barker and Schulte, 2017, p. 56).

Requirement Drawing on the relevant academic literature, and making specific reference to IFRS 13 Fair Value Measurement where appropriate, discuss the above statement.