An Entity entered into a non-cancellable four-year operating lease to hire a photocopier on 1 January 2019. It pays 5,000 per year in arrears to the lessor. A similar photocopier would normally be depreciated over a 5-year period.

The cost of capital for discounting purposes is 10% per year.

Show clearly how the above lease should be accounted for in Entity 2's financial statements for the year ended 31 December 2019 in accordance with IFRS 16 Leases.