QUESTION 2 (30 marks) Ellesmere Limited entered into the following transactions during the year ended 31 December 20X3 (1) Entered into a speculative interest rate option costing N$ 10 000 on 1 January 20X3 to borrow N$ 6 000 000 from AB Bank commencing 31 March 20X5 for 6 months at 4%. The value of the option was N$ 15 250

(2) Purchased 6% debentures in FG Limited on 1 January 20X3 (their issue date for N$ 150 000 as an investment. Ellesmere Limited intends to hold the debentures until their redemption at a premium in 5 years time. The effective rate of interest of the bond is 8.0%

(3) Purchased 50 000 shares in ST Limited on 1 July for N$ 3.50 each as an investment. The share price for on 31 December 20X3 was N$3.75.

Required Show the accounting treatment and relevant extracts from the financial statements for the year ended 31 December 20X3. Ellesmere Limited only designates financial assets at their fair value through profit and loss where this is unavoidable (20 marks)