QUESTION 1 (24 MARKS) The following are the transactions of Kaya Bhd, which were completed during the fiscal year. 1. Kaya Bhd purchased 2,000 securities of Mewah Company at the price of RM5 each with the prospect of selling them in future when their value appreciates. The brokerages fee for this purchase is RM1,350. 2. Kaya Bhd purchased RM100,000 of the government's bond, paying at price of 103.5%. Kaya Bhd also paid RM1,700 for the brokerage fees. Kaya Bhd sold half of the shares of Mewah Company that it previously bought at a price of RM7 per share. Required: a) Explain how Kaya Bhd would classify its investments in Kaya Bhd. (6 marks) b) Prepare the journal entries for the transactions in accordance with the current applicable accounting standards for financial instruments. (8 marks) c) How would your answer to part a) be if the Kaya Bhd decides to have an earlier adoption of MFRS 9. State any additional information that you need to have before the classification can be made. (6 marks) d) State the TWO (2) conditions a financial asset which is a debt instrument can be measured at amortised cost. (4 marks) QUESTION 1 (24 MARKS) The following are the transactions of Kaya Bhd, which were completed during the fiscal year. 1. Kaya Bhd purchased 2,000 securities of Mewah Company at the price of RM5 each with the prospect of selling them in future when their value appreciates. The brokerages fee for this purchase is RM1,350. 2. Kaya Bhd purchased RM100,000 of the government's bond, paying at price of 103.5%. Kaya Bhd also paid RM1,700 for the brokerage fees. Kaya Bhd sold half of the shares of Mewah Company that it previously bought at a price of RM7 per share. Required: a) Explain how Kaya Bhd would classify its investments in Kaya Bhd. (6 marks) b) Prepare the journal entries for the transactions in accordance with the current applicable accounting standards for financial instruments. (8 marks) c) How would your answer to part a) be if the Kaya Bhd decides to have an earlier adoption of MFRS 9. State any additional information that you need to have before the classification can be made. (6 marks) d) State the TWO (2) conditions a financial asset which is a debt instrument can be measured at amortised cost. (4 marks)