Question 1 [20 Marks] Indicate whether the below statements are true or false and provide a brief explanation to support your answer. NB: no marks will be earned by just writing true or false. 1.1 Prepaid expenses are financial assets. 1.2 Investments in equity instruments and investments in debt instruments that are classified as fair value through other comprehensive income are accounted for in exactly the same way as each other. 1.3 Transaction costs are expensed in the case of financial liabilities classified as subsequently measured at amortised cost. 1.4 A contract that the entity must settle by issuing a fixed number of its own equity instruments will be recognized as a financial liability. 1.5 Expected credit losses are recognized for all financial assets irrespective of how the financial asset is classified. 1.6 A change in intention is sufficient to result in the reclassification of a financial asset. 1.7 The reclassification of a financial asset is accounted for from the date the entity changes its business model for managing the financial asset. 1.8 Financial liabilities classified at fair value through profit or loss may be reclassified to amortised cost id the liability had been designated at fair value through profit or loss. 1.9 Financial assets are always initially measured the acquisition price, irrespective of fair value on the date of acquisition. 1.10 Investments in convertible debentures will be classified as subsequently measured at amortised cost, if the business model of the entity is to hold convertible debentures until maturity, and the cash flows of the debentures are solely payments of the principal and interest on the principal