You are required to identify and give reason for the appropriate classification of financial assets of PT ABC bellow:

1. Investment in 4 years convertible bond issued by PT XYZ . The par value of the convertible bond is USS 100,000 (each US$10,000 can be converted into 1,000 common shares of PT XYZ) with coupon rate 8%. Similar debt instruments (non convertible) give coupon rate of 9%.
2. Investment in bonds payable issued by PT Z (US$ 300,000) and PT W (US$ 200,000). PT ABC holds these debt investments to collect their contractual cash flows of interest and principle. The funding needs of the company are predictable and the maturity of such financial assets is matched to ABCs estimated funding needs. ABC performs credit risk management activities with the objective of minimising credit losses.
3. PT ABC has trade receivables from 2 segment, segment A and segment B. The trade receivables from segment A have average collection period of 30 days. Based on PT ABCs historical records the level of the uncollectible receivables from this segment is very low. Trade receivables from segment B always subject to factoring arrangement (the payment term from this segment is much longer than trade receivables from segment A). The factoring arrangement result in derecognition.