IFRS

Case 5 / Lease (7 Points) On 1 January 20X1 Stamper Co, producer of metal casts, enters into a lease contract to lease the stamping machine. Stamper&CO incurred additional costs of 15 000 EUR for freight were recognized in X1 as operating expense. Lease term is 5 years, annual lease payments are 110 000 EUR payable 31 December each year. At the end of the lease term (31/12/20X5). Stamper&Co has an obligation to purchase the machine for 20 000 EUR. There is no unguaranteed residual value of the lessor. Useful life of stamping machine is 8 years. The interest rate implicit cannot be determined by Stamper&Co. However, the incremental borrowing rate is 4,2 % O Required: How would this transaction appear in the financial statements of Stamper Co. at 31 December 20X1? Please prepare all the journal entries necessary. Do not take deferred taxes into account How would the transaction impact EBIT and financial income and the 3 components of the cash flow statement in 20X1