2. Company Z enters into a finance lease contract for some equipment whereby it has the right of use of the equipment for 3 years. At the end of this time the equipment will have no residual value. The contract provides for half-yearly payments in advance of 160,000, the first payment being made on 1 January 2021. The equipment is to be depreciated using the straight line method. The equipment could have been purchased outright for 798,880. Company Z has a December year end. Required (a) What is off balance sheet finance? (2 marks) (b) Show how the equipment will be accounted for in the financial statements of Company Z for the year ended 2021 under IFRS 16. (11 marks) (c) How were leases accounted for under the old accounting standard IAS 17 and why did this standard need to be changed? Your answer to this question should not be more than 210 words. (7 marks) Total 20 marks 18 &7 19 * Type N 10 f ( ) f12 dele