Subject: Potential Investment Opportunities

Dear Mercedes,

As we agreed on the telephone, I am sending the details of the investments we acquired

during the reporting period.

We were involved in talks with our bankers on the suitability of the investments. However, we
have not looked at the accounting treatment for them in our separate financial statements.

Unfortunately, I have had little experience of the accounting treatment of investments having
not worked for acquisitive companies in the past. I am also new to reporting under IFRS.

Although I am looking forward to the new challenges, I feel your assistance would save me
spending a great deal of time looking through reporting manuals.

I have heard that the classification of an investment will determine the accounting treatment of
it in the separate financial statements. I would therefore like to discuss the classification of
each of the investments at the meeting.

Thank you for looking at this. If you require any further information please contact me.

I am looking forward to our meeting next Tuesday.

Paul