On 1 May 20X5, Ashanti Co purchased a $20 million five-year bond with semi-annual interest of 5% payable on 31 October and 30 April for the purpose of collecting contractual cash flows. The credit risk of these bonds were assessed as low. The purchase price and fair value of the bond was $21.62 million. The effective annual interest rate is 8% or 4% on a semi-annual basis. The bond is a financial asset measured at amortised cost in accordance with IFRS 9 Financial Instruments. During the preparation of the consolidated financial statements at the start of June 20x8, the financial controller identified that the interest due on the bond at 30 April 20x8 had not been received. She observed that the October 20x7 interest had been paid almost 20 days after the due date and is concerned that the asset may be impaired. She is considering changing the classification of the asset to fair value through other comprehensive income (FVTOCI) in order to avoid having to test for impairment

1. Discuss the following in relation to the asset:

a. whether you agree with the financial controller to re-classify the asset.

b. the accounting treatment relating to the impairment for the late payment in October 20x7.

c. the accounting treatment relating to the impairment for April 20x8, assuming it is an adjusting event after the end of the reporting period.