FFL took on additional medium-term borrowings in the year to fund the development of a new internet based communication system, so that real time information on progress of service work is available, to help improve utilisation of the company's service engineers. Documentation relating to these borrowings was quickly drawn up, and not all relevant parties to the agreement were noted, and some details, regarding payment terms appear to be ambiguous. ln-house legal counsel recently instigated a review of loan documentation to ensure these errors are identied and corrected, but this work is not complete. To fund the on-going expansion of the business, FFL issued $45m of 5 year convertible notes on 30 June 2016. The notes may be converted to ordinary shares in the company upon maturity, or redeemed at the discretion of the company. The CFO noted the need to apportion the note instrument between equity and debt components in accordance with the treatment of embedded derivatives prescribed by AASB 139 Financial Instruments: Recognition and Measurement; however he noted his team was unfamiliar with the accounting methodologies required