Prepare question 2.1 and 2.2.

QUESTION 2 (29 marks) Buildit (Pty) Ltd is a retail company specialising in items such as electrical appliances, tools and machinery, paint, and adhesives. The company has a 31 December financial year-end. Due to the economic downturn, Buildit (Pty) Ltd does not foresee any viable business projects to invest in and, for this reason, any excess cash is to be invested. The company has decided to invest in government bonds. The details of the govern-ment bonds are as follows: - The government bond portfolio is held to earn contractual cashflows where the contractual cashflows comprise a return of the capital amount and interest on the capital. - Government bond portfolio details: - The related cashflows took place on their respective due dates. - The purchase price on the acquisition date was equal to its fair value on 1 Jan-uary 2019. REQUIRED: 2.1) Discuss fully how the government bonds should be classified and measured in terms of IFRS 9. Note: No definitions are required. Apply the definitions to the scenario. (9 marks) 2.2) Prepare all the general journal entries relating to the government bonds in the records of Buildit (Pty) Ltd for the year ended 31 December 2023. The general journal date(s) are required. Narrations are not required. Ignore all taxation. Show all calculations and round to the nearest rand where applicable. (20 marks) Medihelp Limited is a private hospital group that operates across South Africa and focuses on providing acute care, specialist-orientated, multi-disciplinary hospital ser-vices, and related service offerings using the latest technology. The group has a De-cember financial year-end. On the 15th of November 2023, Mr. Fall, a visitor to one of the hospitals in Cape Town, slipped on a wet floor in the hospital reception area while on his way to visit his ill father. Due to the fall, he sustained numerous fractures to his right arm and was im-mobilised for 5 months. On the 1st of December 2023, Mr. Fall filed a lawsuit against the hospital for negli-gence, claiming damages for the injuries sustained and loss of income suffered as a result of his fall. On 31 December 2023, the attorneys of Medihelp Limited reported that it is highly probable that Mr. Fall's claim against the company will be successful. However, they are uncertain about the amount of the damages that will be awarded and will gain a better understanding of the possible amount of damages after the court proceedings to be held on the 2nd of February 2024. Management has decided that there is not enough information at year-end to determine a reasonable estimate of the amount of the damages. REQUIRED: Discuss how the legal claim should be recognised, measured and disclosed in the annual financial statements of Medihelp Limited for the financial year ended 31De -cember 2023 in accordance with IAS 37 of the International Financial Reporting Stand-ards. (11 marks)