B-Answer ONE Question QUESTION THREE A company issues 3% convertible bonds at a value of $3,500,000. Each bond is convertible at any time up to maturity into 300 ordinary shares. Alternatively, the bonds will be redeemed at par value at the end of year four. The market rate applicable to non-convertible bonds is 5%. Discount Factor 5% Year Discount Factor 3% 1 0.9709 2 0.9426 3 0.9151 4 0.8885 0.9524 0.9070 0.8638 0.8227 Required a) i) ii) iii) Calculate the financial liability and the value of equity to be recognised in the Statement of Financial Position when the convertible bonds are issued. Identify the values to be included in both the Statement of Profit or Loss and the Statement of Financial Position for the duration of the bond. You are required to show all workings, rounding to two decimal places if required. A balancing figure due to rounding is acceptable. Provide a synopsis of the accounting standards that regulate the reporting of complex financial statements. Written work must be in your own words with in-text citation, a bibliography is not required. Word count: no more than 300 words (30 marks)