Zed company limited invests in debt securities, that is, bonds. Zed company limited at times trades the bonds by turning them quickly for profit. Others bonds are normally held for the long term by Zed company limited. IFRS 9 - Financial Instruments sets out the principles and rules for the appropriate accounting treatment of financial instruments. In particular, it deals with loans between entities, both from the perspective of the borrower and the lender. Details of two particular bonds purchased on 1 January 2020 are as follows: Alpha Gamma Nominal value of bond K60 million K90 million Coupon interest rate 5% 4% Purchase price of bond K56 million K77 million Effective yield to maturity 8% 7% Zed company limited purchased the Gamma bond with a view to hold the bond for the long term, drawing the interest and principal as it becomes payable. The Alpha bond bought by Zed company was at a deep discount, and Zed company Limiteds aim is to wait until the market value of the Alpha bond increases, and thereafter sell it at a profit. The fair value of Alpha bond at 31 December 2021 was K55 million. For each bond, the coupon is payable on 31 December each year, and is paid as promised. Required: (i) Outline the accounting treatment for each bond required by IFRS 9 for year ended 31 December 2021. (10 marks) (ii) Discuss the accounting treatment required by IFRS 9 Financial Instruments for recognition and measurement of financial assets such as bonds. Also discuss the tests needed to decide among alternative treatments. (10 marks) All workings should be clearly shown. (iii) Discuss how intra-group dividends should be accounted for in the Consolidated Statement of Profit or Loss and Other Comprehensive Income, and in the Consolidated Statement of Financial Position. (5 marks)