Accounting and Reporting of Financial Instruments, Important Questions with Solutions for CA Final Financial Reporting May & Nov 2021 Exams
Question 1 –
XYZ issued Rs. 4,80,000 4% redeemable preference shares on 1st April 20X5 at par. Interest is paid annually in arrears, the first payment of interest amounting Rs. 19,200 was made on 31st March 20X6 and it is debited directly to retained earnings by accountant. The preference shares are redeemable for a cash amount of Rs. 7,20,000 on 31st March 20X8. The effective rate of interest on the redeemable preference shares is 18% per annum. The proceeds of the issue have been recorded within equity by accountant as this reflects the legal nature of the shares. Board of directors intends to issue new equity shares over the next two years to build up cash resources to redeem the preference shares.
Mukesh, Accounts manager of XYZ has been told to review the accounting of aforesaid issue. CFO has asked from Mukesh the closing balance of preference shares at the year end. If you were Mukesh, then how much balance you would have shown to CFO on analysis of the stated issue. Prepare necessary adjusting journal entry in the books of account, if required.
Solution –
The preference shares provide the holder with the right to receive a predetermined amount of annual dividend out of profits of the company, together with a fixed amount on redemption.
Whilst the legal form is equity, the shares are in substance debt. The fixed level of dividend is interest and the redemption amount is equivalent to the repayment of a loan.
Under Ind AS 32 ‘Financial Instruments: Presentation’ these instruments should be classified as financial liabilities because there is a contractual obligation to deliver cash. The preference shares should be accounted for at amortised cost using the effective interest rate of 18%.
|
Year |
1 April, 20X5 Rs. |
Interest @18% Rs. |
Paid at 4% Rs. |
31 March, 20X6 Rs. |
| 20X5-20X6 | 480,000 | 86,400 | (19,200) | 547,200 |
Accordingly, the closing balance of Preference shares at year end i.e. 31 st March, 20X6 would be Rs. 5,47,200.
Accountant has inadvertently debited interest of Rs. 19,200 in the profit and loss. However, the interest of Rs. 86,400 should have been debited to profit and loss as finance charge.
Similarly, amount of Rs. 5,47,200 should be included in borrowings (non-current liabilities) and consequently, Equity should be reduced by Rs. 480,000 proceeds of issue and Rs. 67,200 (86,400 – 19,200) i.e. total by 5,47,200.
Necessary adjusting journal entry to rectify the books of accounts will be:
|
|
Rs. | Rs. |
| Preference share capital (equity) (Balance sheet) | 4,80,000 | |
| Finance costs (Profit and loss) | 86,400 | |
|
To Equity – Retained earnings (Balance sheet) |
19,200 | |
|
To Preference shares (Long-term Borrowings) (Balance sheet) |
5,47,200 |
Question 2 –
An entity purchases a debt instrument with a fair value of Rs.1,000 on 15th March, 20X1 and measures the debt instrument at fair value through other comprehensive income. The instrument has an interest rate of 5% over the contractual term of 10 years, and has a 5% effective interest rate. At initial recognition, the entity determines that the asset is not a purchased or original credit-impaired asset. On 31st March 20X1 (the reporting date), the fair value of the debt instrument has decreased to Rs.950 as a result of changes in market interest rates. The entity determines that there has not been a significant increase in credit risk since initial recognition and that ECL should be measured at an amount equal to 12 month ECL, which amounts to Rs.30.
On 1st April 20X1, the entity decides to sell the debt instrument for Rs.950, which is its fair value at that date.
Pass journal entries for recognition, impairment and sale of debt instruments as per Ind AS 109. Entries relating to interest income are not to be provided.
Solution –
On initial recognition
| Debit (Rs.) | Credit (Rs.) | |
| Financial asset-FVOCI | 1,000 | |
|
To Cash |
1,000 |
On Impairment of debt instrument
| Debit (Rs.) | Credit (Rs.) | |
| Impairment expense ( P&L) | 30 | |
| Other comprehensive income | 20 | |
| To Financial asset-FVOCI | 50 |
The cumulative loss in other comprehensive income at the reporting date was Rs. 20. That amount consists of the total fair value change of Rs. 50 (that is, Rs. 1,000 – Rs. 950) offset by the change in the accumulated impairment amount representing 12-month ECL, that was recognized (Rs. 30).
On Sale of debt instrument
| Debit (Rs.) | Credit (Rs.) | |
| Cash | 950 | |
|
To Financial asset – FVOCI |
950 | |
| Loss on sale (P & L) | 20 | |
|
To Other compressive income |
20 |
Question 3 –
On 1st April, 20X4, Shelter Ltd. issued 5,000, 8% convertible debentures with a face value of Rs. 100 each maturing on 31st March, 20X9. The debentures are convertible into equity shares of Shelter Ltd. at a conversion price of Rs. 105 per share. Interest is payable annually in cash. At the date of issue, Shelter Ltd. could have issued non-convertible debt with a 5-year term bearing a coupon interest rate of 12%. On 1st April, 20X7, the convertible debentures have a fair value of Rs. 5,25,000. Shelter Ltd. makes a tender offer to debenture holders to repurchase the debentures for Rs. 5,25,000, which the holders accepted. At the date of repurchase, Shelter Ltd. could have issued non -convertible debt with a 2 year term bearing a coupon interest rate of 9%.
Show accounting entries in the books of Shelter Ltd. for recording of equity and liability component:
(i) At the time of initial recognition and
(ii) At the time of repurchase of the convertible debentures.
The following present values of Rs. 1 at 8%, 9% & 12% are supplied to you:
| Interest Rate | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 8% | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 |
| 9% | 0.917 | 0.842 | 0.772 | 0.708 | 0.650 |
| 12% | 0.893 | 0.797 | 0.712 | 0.636 | 0.567 |
Solution –
(i) At the time of initial recognition
|
|
Rs. |
| Liability component | |
| Present value of 5 yearly interest payments of Rs. 40,000, discounted at 12% annuity (40,000 x 3.605) |
1,44,200 |
| Present value of Rs. 5,00,000 due at the end of 5 years, discounted at 12%, compounded yearly (5,00,000 x 0.567) |
2,83,500 |
| 4,27,700 | |
| Equity component (Rs. 5,00,000 – Rs. 4,27,700) |
72,300 |
| Total proceeds | 5,00,000 |
Note: Since Rs. 105 is the conversion price of debentures into equity shares and not the redemption price, the liability component is calculated @ Rs. 100 each only.
Journal Entry
|
|
Rs. | Rs. |
| Bank | 5,00,000 | |
|
To 8% Debentures (Liability component) |
4,27,700 | |
|
To 8% Debentures (Equity component) |
72,300 | |
| (Being Debentures are initially recorded a fair value) |
(ii) At the time of repurchase of convertible debentures
The repurchase price is allocated as follows:
|
|
Carrying Value @ 12% | Fair Value @ 9% | Difference |
| Rs. | Rs. | Rs. | |
| Liability component | |||
| Present value of 2 remaining yearly interest payments of Rs. 40,000, discounted at 12% and 9%, respectively | 67,600 | 70,360 | |
| Present value of Rs. 5,00,000 due in 2 years, discounted at 12% and 9%, compounded yearly, respectively | 3,98,500 | 4,21,000 | |
| Liability component | 4,66,100 | 4,91,360 | (25,260) |
| Equity component (5,25,000 – 4,91,360) | 72,300 | 33,640* | 38,660 |
| Total | 5,38,400 | 5,25,000 | 13,400 |
*(5,25,000 – 4,91,360) = 33,640
Journal Entries
| Rs. | Rs. | |
| 8% Debentures (Liability component) | 4,66,100 | |
| Profit and loss A/c (Debt settlement expense) | 25,260 | |
|
To Bank A/c |
4,91,360 | |
| (Being the repurchase of the liability component recognised) | ||
| 8% Debentures (Equity component) | 72,300 | |
|
To Bank A/c |
33,640 | |
|
To Reserves and Surplus A/c |
38,660 | |
| (Being the cash paid for the equity component recognised) |
Question 4 –
Vedika Ltd. issued 80,000 8% convertible debentures @ Rs.100 each on 1st April, 2015. The debentures are due for redemption on 31st March, 2019 at a premium of 20%, convertible into equity shares to the extent of 50% and balance to be settled in cash to the debenture holders. The interest rate on equivalent debenture without conversion right was 12%. The conversion to equity qualifies as fixed for fixed. You are required to separate the debt and equity component at the time of use and show the accounting entries in Vedika Ltd.’s books at initial recognition only. The following present values of Rupee 1 at 8% and 12% are provided for a period of 5 years.
| Interest Rate | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| 8% | 0.923 | 0.853 | 0.789 | 0.731 | 0.677 |
| 12% | 0.887 | 0.788 | 0.701 | 0.625 | 0.557 |
Solution –
In the books of Vedika Ltd.
Convertible debentures issued by Vedika are compound financial instrument. As per Ind AS 109, entity should separate debt from equity and account accordingly.
Debt – FL
| Year | CF | PV @ 12% | |
| 31/3/16 | 6,40,000 | Int. @ 8% | 5,67,680 |
| 31/3/17 | 6,40,000 | Int. @ 8% | 5,04,320 |
| 31/3/18 | 6,40,000 | Int. @ 8% | 4,48,640 |
| 31/3/19 | 6,40,000 | Int. @ 8% | 4,00,000 |
| 40,00,000 | 50% Municipal | 25,00,000 | |
| 8,00,000 | POR 20% | 5,00,000 | |
| 49,20,640 |
Equity = TL – FL
= 80,00,000 – 49,20,640 = 30,79,360
| Bank A/c | 80,00,000 | |
| To Debt (FL) | 49,20,640 | |
| To Equity | 30,79,360 |
Question 5 –
On 1 January 2018, Entity X writes a put option for 1,00,000 of its own equity shares for which it receives a premium of Rs. 5,00,000.
Under the terms of the option, Entity X may be obliged to take delivery of 1,00,000 of its own shares in one year’s time and to pay the option exercise price of Rs. 22,000,000. The option can only be settled through physical delivery of the shares (gross physical settlement). Examine the nature of the financial instrument and how it will be accounted assuming that the present value of option exercise price is Rs. 20,000,000?
Solution –
This derivative involves Entity X taking delivery of a fixed number of equity shares for a fixed amount of cash. Even though the obligation for Entity X to purchase its own equity shares for Rs. 22,000,000 is conditional on the holder of the option exercising the option, Entity X has an obligation to deliver cash which it cannot avoid.
As per para 23 of Ind AS 32 ‘Financial Instruments: Presentation’, the accounting for financial instrument will be as below:
- The financial liability is recognised initially at the present value of the redemption amount, and is reclassified from equity. This would imply that a financial liability for an amount of present value of Rs. 22,000,000, say Rs. 20,000,000 will be recognised through a debit to equity. The initial premium received (Rs. 5,00,000) is credited to equity.
- Subsequently, the financial liability is measured in accordance with Ind AS 109. While a subsequent paragraph will deal with measurement of financial liabilities. The financial liability of Rs. 20,000,000 will be measured at amortised cost as per Ind AS 109 and finance cost of Rs. 2,000,000 will be recognised over the exercise period.
- If the contract expires without delivery, the carrying amount of the financial liability is reclassified to equity ie. an amount of Rs. 22,000,000 will be reclassified from financial liability to equity.
Question 6
On 1 January 20X1, ABG Pvt. Ltd., a company incorporated in India enters into a contract to buy solar panels from A&A Associates, a firm domiciled in UAE, for which delivery is due after 6 months i.e. on 30 June 20X1
The purchase price for solar panels is US$ 50 million.
The functional currency of ABG is Indian Rupees (INR) and of A&A is Dirhams.
The obligation to settle the contract in US Dollars has been evaluated to be an embedded derivative which is not closely related to the host purchase contract.
Exchange rates:
- Spot rate on 1 January 20X1: USD 1 = INR 60
- Six-month forward rate on 1 January 20X1: USD 1 = INR 65
- Spot rate on 30 June 20X1: USD 1 = INR 66
Analyse
Solution –
This contract comprises of two components:
- Host contract to purchase solar panels denominated in INR i.e. a notional payment in INR at 6-month forward rate (INR 3,250 million or INR 325 crores)
- Forward contract to pay US Dollars and receive INR i.e. a notional receipt in INR. In other words, a forward contract to sell US Dollars at INR 65 per US Dollar
It may be noted that the notional INR payment in respect of host contract and the notional INR receipt in respect of embedded derivative create an offsetting position.
Subsequently, the host contract is not accounted for until delivery. The embedded derivative is recorded at fair value through profit or loss. This gives rise to a gain or loss on the derivative, and a corresponding derivative asset or liability.
On delivery ABG records the inventory at the amount of the host contract (INR 325 crores). The embedded derivative is considered to expire. The derivative asset or liability (i.e. the cumulative gain or loss) is settled by becoming part of the financial liability that arises on delivery.
In this case the carrying value of the currency forward at 30 June 20X1 on maturity is INR 50 million X (66 minus 65) = INR 5 crores (liability/loss). The loss arises because ABG has agreed to sell US Dollars at Rs. 65 per US Dollar whereas in the open market, US Dollar can be sold at Rs. 66 per US Dollar.
No accounting entries are passed on the date of entering into purchase contract. On that date, the forward contract has a fair value of zero (refer section “option and non-option based derivatives” below)
Subsequently, say at 30 June 20X1, the accounting entries are as follows (all in INR crores):
| 1 | Loss on derivative contract | 5 | |
|
To Derivative liability |
5 | ||
| (Being loss on currency forward) | |||
| 2 | Inventory | 325 | |
|
To Trade payables (financial liability) |
325 | ||
| (Being inventory recorded at forward exchange rate determined on date of contract) | |||
| 3 | Derivative liability | 5 | |
|
To Trade payables (financial liability) |
5 | ||
| (Being reclassification of derivative liability to trade payables upon settlement) |
The effect is that the financial liability at the date of delivery is INR 330 crores (= INR 325 crores + INR 5 crores), equivalent to US$ 50 million at the spot rate on 30 June 20X1.
Going forward, the financial liability is a US$ denominated financial instrument. It is retranslated at the dollar spot rate in the normal way, until it is settled.
Question 7 –
D Ltd. issues callable preference shares to G Ltd. for a consideration of Rs. 10 lakhs. The holder has an option to convert these preference shares to a fixed number of equity instruments of the issuer anytime up to a period of 3 years. If the option is not exercised by the holder, the preference shares are redeemed at the end of 3 years. The preference shares carry a coupon of RBI base rate plus 1% p.a.
The prevailing market rate for similar preference shares, without the conversion feature or issuer’s redemption option, is RBI base rate plus 4% p.a. On the date of contract, RBI base rate is 9% p.a. The value of call as determined using Black and Scholes model for option pricing is is Rs. 29,165
Calculate the value of the liability and equity components.
Solution –
The values of the liability and equity components are calculated as follows:
Present value of principal payable at the end of 3 years (Rs. 10 lakhs discounted at 13% for 3 years) = Rs. 6,93,050
Present value of interest payable in arrears for 3 years (Rs. 100,000 discounted at 13% for each of 3 years) = Rs. 2,36,115
The issuer’s right to call the instrument in the event that interest rates go up makes a callable instrument less attractive to the holder than a plain vanilla instrument. This results in a derivative asset. The value of that early redemption option is Rs. 29,165
Net financial liability (A + B – C) = Rs. 9,00,000
Therefore, equity component = fair value of compound instrument, say, Rs. 1,000,000 less net financial liability component i.e. Rs. 9,00,000 = Rs. 1,00,000.
In subsequent years, the profit and loss account is charged with interest of RBI base rate plus 4% p.a. on the liability component at (A) above.
Question 8 –
On 1st April 2017, A Ltd. lent Rs. 2 crores to a supplier in order to assist them with their expansion plans. The arrangement of the loan cost the company Rs. 10 lakhs. The company has agreed not to charge interest on this loan to help the supplier’s short -term cash flow but expected the supplier to repay Rs. 2.40 crores on 31st March 2019. As calculated by the finance team of the company, the effective annual rate of interest on this loan is 6.9% On 28th February 2018, the company received the information that poor economic climate has caused the supplier significant problems and in order to help them, the company agreed to reduce the amount repayable by them on 31st March 2019 to Rs. 2.20 crores. Suggest the accounting entries as per applicable Ind AS
Solution –
The loan to the supplier would be regarded as a financial asset. The relevant accounting standard Ind AS 109 provides that financial assets are normally measured at fair value.
If the financial asset in which the only expected future cash inflows are the receipts of principal and interest and the investor intends to collect these inflows rather than dispose of the asset to a third party, then Ind AS 109 allows the asset to be measured at amortised cost using the effective interest method.
If this method is adopted, the costs of issuing the loan are included in its initial carrying value rather than being taken to profit or loss as an immediate expense. This makes the initial carrying value Rs. 2,10,00,000.
Under the effective interest method, part of the finance income is recognised in the current period rather than all in the following period when repayment is due. The income recognised in the current period is Rs. 14,49,000 (Rs. 2,10,00,000 x 6.9%) evidence that the financial asset suffered impairment at 31st March 2018.
The asset is re-measured at the present value of the revised estimated future cash inflows, using the original effective interest rate. Under the revised estimates the closing carrying amount of the asset would be Rs. 2,05,79,981 (Rs. 2,20,00,000 / 1.069). The reduction in carrying value of Rs. 18,69,019 (Rs. 2,24,49,000 – 2,05,79,981) would be charged to profit or loss in the current period as an impairment of a financial asset.
Therefore, the net charge to profit or loss in respect of the current period would be Rs. 4,20,019 (18,69,019 – 14,49,000).
Question 9 –
On 1st January 20X1, SamCo. Ltd. agreed to purchase USD ($) 20,000 from JT Bank in future on 31st December 20X1 for a rate equal to Rs. 68 per USD. SamCo. Ltd. did not pay any amount upon entering into the contract. SamCo Ltd. is a listed company in India and prepares its financial statements on a quarterly basis.
Following the principles of recognition and measurement as laid down in Ind AS 109, you are required to record the entries for each quarter ended till the date of actual purchase of USD.
For the purposes of accounting, please use the following information representing marked to market fair value of forward contracts at each reporting date:
As at 31st March 20X1 – Rs. (25,000)
As at 30th June 20X1 – Rs. (15,000)
As at 30th September 20X1 – Rs. 12,000
Spot rate of USD on 31st December 20X1 – Rs. 66 per USD
Solution –
(i) Assessment of the arrangement using the definition of derivative included under Ind AS 109.
Derivative is a financial instrument or other contract within the scope of this Standard with all three of the following characteristics:
a) its value changes in response to the change in a Specified ‘underlying’.
b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors.
c) it is settled at a future date.
Upon evaluation of contract in question it is noted that the contract meets the definition of a derivative as follows:
a) the value of the contract to purchase USD at a fixed price changes in response to changes in foreign exchange rate.
b) the initial amount paid to enter into the contract is zero. A contract which would give the holder a similar response to foreign exchange rate changes would have required an investment of USD 20,000 on inception.
c) the contract is settled in future,
The derivative is a forward exchange contract.
As per Ind AS 109, derivatives are measured at fair value upon initial recognition and are subsequently measured at fair value through profit and loss.
(ii) Accounting on 1st January 20X1:
As there was no consideration paid and without evidence to the contrary the fair value of the contract on the date of inception is considered to be zero. Accordingly, no accounting entries shall be recorded on the date of entering into the contract.
(iii) Accounting on 31st March 20X1:
| Particulars | Dr. Amount (Rs.) |
Cr. Amount (Rs.) |
| Profit and loss A/c Dr.
To derivative financial liability (Being mark to market loss on forward contract recorded) |
25,000 |
25,000 |
(iv) Accounting on 30th June 20X1:
The change in value of the derivative forward contract shall be recorded as a derivative financial liability in the books of SamCo Ltd. by recording the following journal entry:
| Particulars | Dr. Amount
(Rs.) |
Cr. Amount
(Rs.) |
| Derivative financial liability A/c Dr.
To Profit and loss A/c (being partial reversal of mark to market loss on forward contract recorded) |
10,000 |
10,000 |
(v) Accounting on 30th September 20X1:
The value of the derivative forward contract shall be recorded as a derivative financial asset in the books of Sam Co Ltd. by recording the following journal entry:
|
Particulars |
Dr. Amount (Rs.) |
Cr. Amount (Rs.) |
| Derivative financial liability A/c Dr
Derivative financial asset A/c Dr To Profit and loss A/c (being gain on mark to market of forward contract booked as derivative financial asset and reversal of derivative financial liability) |
15,000
12,000 |
27,000 |
(vi) Accounting on 31st December 20X1:
The settlement of the derivative forward contract by actual purchase of USD 20,000 shall be recorded in the books of SamCo Ltd. by recording the following journal entry:
| Particulars | Dr. Amount (Rs.) |
Cr. Amount (Rs.) |
| Cash (USD Account) @ 20,000 * 66 Dr. Profit and loss A/c Dr.
To Cash @ 20,000 x 68 To Derivative financial asset A/c (being loss on settlement of forward contract booked on actual purchase of USD) |
13,20,000
52,000 |
13,60,000 12,000 |
Question 10 –
On 1st January 2017, Expo Limited agreed to purchase USD ($) 40,000 from E&I Bank in future on 31st December 2017 for a rate equal to Rs. 65 per USD. Expo Limited did not pay any amount upon entering into the contract. Expo Limited is a listed company in India and prepares its financial statements on a quarterly basis.
Using the definition of derivative included in Ind AS 109 and following the principles of recognition and measurement as laid down in Ind AS 109, you are required to record the entries for each quarter ended till the date of actual purchases of USD.
For the purpose of accounting, use the following information representing marked to market fair value of forward contracts at each reporting date:
| As at 31st March, 2017 | Rs. (50,000) |
| As at 30th June, 2017 | Rs. (30,000) |
| As at 30th September, 2017 | Rs. 24,000 |
| Spot rate of USD on 31st December, 2017 | Rs. 62 per USD |
Solution –
Assessment of the arrangement using the definition of derivative included under Ind AS 109.
Derivative is a financial instrument or other contract within the scope of this Standard with all three of the following characteristics:
(a) its value changes in response to the change in foreign exchange rate (emphasis laid)
(b) it requires no initial net investment or an initial net investment is smaller than would be required for other types of contracts with similar response to changes in market factors.
(c) it is settled at a future date.
Upon evaluation of contract in question, on the basis of the definition of derivative, it is noted that the contract meets the definition of a derivative as follows:
(a) the value of the contract to purchase USD at a fixed price changes in response to changes in foreign exchange rate.
(b) the initial amount paid to enter into the contract is zero. A contract which would give the holder a similar response to foreign exchange rate changes would have required an investment of USD 40,000 on inception.
(c)the contract is settled in future.
The derivative is a forward exchange contract.
As per Ind AS 109, derivatives are measured at fair value upon initial recognition and are subsequently measured at fair value through profit and loss.
Accounting in each Quarter
(i) Accounting on 1st January 2017
As there was no consideration paid and without evidence to the contrary the fair value of the contract on the date of inception is considered to be zero. Accordingly, no accounting entries shall be recorded on the date of entering into the contract.
(ii) Accounting on 31st March 2017
| Particulars | Dr. (Rs.) | Cr. (Rs.) |
| Profit and loss A/c Dr. | 50,000 |
50,000 |
| To Derivative financial liability | ||
| (Being mark to market loss on forward contract recorded) |
(iii) Accounting on 30th June 2017
| Particulars | Dr. (Rs.) | Cr. (Rs.) |
| Derivative financial liability A/c Dr. | 20,000 |
20,000 |
| To Profit and Loss A/c | ||
| (Being partial reversal of mark to market loss on forward contract recorded) |
(iv) Accounting on 30th September 2017
| Particulars | Dr. (Rs.) | Cr. (Rs.) |
| Derivative financial liability A/c Dr. | 30,000 |
54,000 |
| Derivative financial asset A/c Dr. | 24,000 | |
| To Profit and Loss A/c | ||
| (Being gain on mark to market of forward contract booked as derivative financial asset and reversal of derivative financial liability) |
(v) Accounting on 31st December 2017
The settlement of the derivative forward contract by actual purchase of USD 40,000
| Particulars | Dr. (Rs.) | Cr. (Rs.) |
| Cash (USD Account) (USD 40,000 x Rs. 62) Dr. | 24,80,000 | |
| Profit and loss A/c Dr. | 1,44,000 | |
| To Cash (USD 40,000 x Rs. 65) | 26,00,000 | |
| To Derivative financial asset A/c | 24,000 | |
| (Being loss on settlement of forward contract booked on actual purchase of USD) |