Question 2-15 marks (a) Which of the following is a 'financial instrument' as defined by MFRS 9? Give reasons for your answer. (i) Leases (ii) Trade receivables (iii) An investment in an associate (iv) A non-controlling interest in a partnership (v) Provision for employee benefits [5 marks] (b) On 31 December 20x1, K Bhd issues 100 million redeemable preference shares at an issue price of 95 cents per share. Transaction cost amount to 1 million and paid in cash. The preference shares carry a mandatory fixed dividend of five cents per share payable at the end of each year and are redeemable at RM1 per share on 31 December 20x6 Required: Explain the classification of the preference share and the subsequent measurement (assume the effective interest rate is 6.4415%) [10 marks]