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QUESTION 3 ( FINANCIAL INSTRUMENTS ) [ IAS 3 2 , IFRS 9 ] [ 3 0 marks ] On 1 January 2 0 1

QUESTION 3(FINANCIAL INSTRUMENTS)[IAS32, IFRS9][30 marks]
On 1 January 2017, Munya Tsatsa (Pty) Ltd, a company based in Lephalale purchased government bonds for R1600000.
The face value is R1680000, and the coupon interest is 8% per annum payable annually in arrears.
The government bonds are redeemable at face value in 3 years.
The effective interest rate is 9.9119% per annum.
The company's intention was to hold government bonds to collect contractual cash flows and the return on capital and interest.
On 31 July 2018, the company changed its business model (the new business model become effective from this date) relating to the government bonds. The fair value on this date was R1850000 and changed to R1932000 on 31 December 2018.
Credit risk has not increased significantly since recognition over the 3 years and the asset was not credit impaired at any point.
The 12 month expected credit losses were estimated as follows.
\table[[Date,12 month expected credit loss],[1 January 2017,R56000],[31 December 2017,R58000],[31 July 2018,R84000],[31 December 2018,R86000]]
Required
Prepare all related journal entries in Munya (Pty) Ltd 's general journal for the 3 years ended 31 December 2017,2018, and 2019 assuming that the government bonds were reclassified from amortised cost to fair value through profit or loss.
[30]
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