Question 4 Trendy Bhd's financial year ends on 30 June. On 1 July 2018, Trendy Bhd acquired RM100 million bonds at a cost of RM90,000,000, inclusive of transaction costs. The bonds pay a fixed interest of RM5 million per annum and mature on 1 July 2019. On the date of purchase, the management of Trendy Bhd intended to hold the bonds and collect the contractual cash flows arising from them upon maturity. The effective interest rate of the bonds on 1 July 2018 was 7%. Required: With reference to MERS 9 Financial Instruments, explain how Trendy Bhd should recognise and measure the bonds. Show the value of the bonds as at 30 June 2019. (8 marks) Question 5 Discuss the differences between the direct' and 'indirect' method of preparing the statement of cash flow in accordance to MERS107. (8 marks)