Help me to solve all the questions using IFRS 16 please

The following scenario relates to questions 266270 On 1 October 20X6 Fino entered into an agreement to lease twenty telephones for its team of sales staff. The telephones are to be leased for a period of 24 months at a cost of $240 per telephone per annum, payable annually in advance. The present value of the lease payments at 1 October 20X6 is $9,164. On 1 April 20X7, Fino entered into an agreement to lease an item of plant from the manufacturer. The lease required four annual payments in advance of $100,000 each commencing on 1 April 20X7. The plant would have a useful life of four years and would be scrapped at the end of this period. The present value of the total lease payments is $350,000. Fino has a cost of capital of 10%. 266 267 268 269 78 Which of the following applies the principle of faithful representation to the above plant lease agreement? A Recording an annual rent expense in Fino's statement of profit or loss B Expensing any interest on a straightline basis over 4 years C Recording an asset in Fino's statement of financial position to reflect control D Record the $100,000 paid as a prepayment to be released over 4 years How much would be charged to Fino's statement of profit or loss for the year ended 30 September 20X7 in respect of the telephones? A $4,800 B $4,582 c $4,364 D $5,498 What would be the carrying amount of the leased plant as at 30 September 20x7? S What interest would be charged to Fino's statement of profit or loss for the year ended 30 September 20X7 in respect of the plant lease? A $12,500 B $25,000 c $17,500 D $35,000 FR: FINANCIAL REPORTING 270 Applying the principles of IFRS 16 Leases to capitalise the plant and recognise the lease liability would have what impact upon the following ratios? Increase Decrease Return on Capital Employed Gearing Interest cover The following scenario relates to questions 271275 On 1 January 20X6 Lotso entered into an agreement to lease new machinery under a 5 year lease, with $300,000 payable on 31 December each year. The asset has a useful life of 6 years, and ownership transfers to Lotso at the end of the lease. The interest rate implicit in the lease is 6% and the present value of the lease payments is $1,263,000. On 1 January 20X6 Lotso sold its head office to a finance company, but continued to use the head office for the remainder of its 20-year estimated useful life under a lease agreement. The carrying amount of the head office on 1 January 20X6 was $10 million and the fair value of the asset and sale proceeds received on 1 January 20X6 were $11.5 million. 271 What would be the finance cost in respect of the machinery lease for the year ended 31 December 20X6? A $62,327 B $90,000 C $75,780 D $63,150 272 What current liability (to the nearest thousand) will be recorded in Lotso's statement of financial position as at 31 December 20X6 in relation to the machinery lease? A $300,000 B $238,000 C $1,039,000 D $801,000 273 What is the carrying amount of the machinery as at 31 December 20X6? A $1,039,000 B $1,263,000 C $1,052,500 D $1,010,400 79