On $1$st January $20$x$1,$ Alpha Ltd$.$ acquired a bond with a face value of $$200,000$ for $$208,904.$ The bond has a coupon rate of $5\%$ and matures in $31$st December $20$x$5.$

Assuming subsequently, the fair value of the bond are as follows:

Fair Value of Bond as at $31$ Dec $20$x$1$ $$206,900$

Fair Value of Bond as at $31$ Dec $20$x$2$ $$205,000$

Fair Value of Bond as at $31$ Dec $20$x$3$ $$204,200$

Fair Value of Bond as at $31$ Dec $20$x$4$ $$201,900$

Required:

$($a$)$ Discuss the initial recognition and the subsequent measurement of the different classifications of financial assets under the applicable FRSs$.$

$($b$)$ Apply the initial recognition and the subsequent measurement of the different classifications of financial assets under the applicable FRSs $($FVTPL$,$ FVOCI, Amortised cost$).$ Provide the journal entries necessary to record the relevant transactions for each year. Show all workings clearly.