The following information relates to ABC Ltd, which has Australian dollars as its functional currency, in the year ended 30 June 2020: 1. It purchased a debt instrument issued by another company with the intention of holding it for a maximum of two years before selling it to another party. This intention reflects the objective of the business model within which the debt instrument is held. 2. It entered into a speculative forward contract to exchange $4 000 000 for 3 100 000. Required: Explain how the definitions of financial instruments and classification requirements of AASB 9 are applied to these transactions. The following information relates to ABC Ltd, which has Australian dollars as its functional currency, in the year ended 30 June 2020: 1. It purchased a debt instrument issued by another company with the intention of holding it for a maximum of two years before selling it to another party. This intention reflects the objective of the business model within which the debt instrument is held. 2. It entered into a speculative forward contract to exchange $4 000 000 for 3 100 000. Required: Explain how the definitions of financial instruments and classification requirements of AASB 9 are applied to these transactions