On 1 January 2019, Crimmock Ltd (which prepares accounts to 31 December) enters into a four-year lease of office machinery. The company is required to make four lease payments of £30,000 and these fall due on 1 January 2019, 2020, 2021 and 2022. It is determined that the rate of interest implicit in the lease is 9% per annum.

Explain how this lease should be accounted for by Crimmock Ltd in accordance with the requirements of IFRS16 Leases.