Question Two A company issued 3,000 convertible bonds at par on 1 January 2019. The bonds are redeemable on 31 December 2022 at their par value of P100 per bond. The bonds pay interest annually in arrears at an interest rate (based on nominal value) of 5 Each bond can be converted at the maturity date into 5 P1 shares. The prevailing mar interest rate for four-year bonds that have no right of conversion is 8%. The present value at 8% of P1 receivable at end of: Year 1 0.926 Year 2 0.857 Year 3 0.794 Year 4 0.735 Required Show the accounting treatment of the: (a) (b) Bond at inception i.e 1 January 2019 (10 marks) Financial liability component at 31 December 2019 using amortised cost (5 marks) (15 marks)