$($iii$)$ Prepare financial statements to reflect the effects of the lease for the financial years

ended $31$ March $2020,31$ March $2022,$ and $31$ March $2024.$QUESTION $1$

Green Tea $4$ Life Ltd has requested your help in preparing their financial statements as they

are unsure of the requirements of NZ IFRS $16$ Leases for lessees.

You are provided with the following lease details:

Green Tea $4$ Life Ltd is the: Lessee

Commencement date $1$ April $2019$

Lease term $5$ years

Economic life of asset $10$ years

Interest expense SCF classification CFOA

IDC incurred by the lessee $$10000$

Upfront payment due on the commencement date $$30000$

Fixed payments per annum at year end $$200000$

Ownership transfer at end of lease No

Lessee$$s incremental borrowing rate $8\%$

The depreciation method used by the lessee Straight line

The relevant present value discount factors are:

Present value of $$1$ in n periods n $=50\mathrm{.}6806$

Present value of an annuity i $=8\%3\mathrm{.}9927$