On $1$ January $20$x$1,$ AAA Ltd $($AAA$)$ acquires bonds with a nominal value of $$100,000$ issued by BBB Ltd

$($BBB$).$ The bonds have a coupon rate of $6\%$ and matures in $3$ years. Coupon interest is payable on the $31$ December of each year, with the first payment being made on $31$ December $20$x$1.$ The effective interest rate at the time of acquisition is $5\%.$

On $31$ December $20$x$1,$ the fair value of the bond was $$102,000.$ On $1$ April $20$x$2,$ AAA disposes of the bonds at a price of $$103,000.$ Both AAA and BBB adopt the Singapore FRSs and have December $31$ year$-$ends. When presenting your answers, please round all answers to the nearest dollar.

$($a$)$ Apply FRS $109$ Financial Instruments and illustrate the accounting of these bonds by preparing necessary journal entries $($journal narrative not required$)$ in AAA$$s books for the years ended $31$ December $20$x$1$ and $31$ December $20$x$2$ if the bonds are classified as measured at fair value through other comprehensive income.

$($b$)$ Apply FRS $109$ Financial Instruments and discuss how the accounting of these bonds would differ from part $($a$)$ above if the bonds had been designated as measured at fair value through profit or loss on $1$ January $20$x$1.$