p Search Help Amber COP U = HAZ_01.181 - Word File Home Insert Design Layout References Malings Review View AX Cut Times New Rom12 AA A A E E - 3 Format Painter ter Bi- XA-2-4- === Mir Tape AIMTE - X Share Comments Dlind . Replace Diese Sensity Cditor et 21 - ABCD Aalbcd: AaBbc Aabbcc AaB Aabbccc Acabcc4bce Abc 1 Normal 1 No Space Heading 1 Herd ng2 ble Subtitle SubtleLm.. Emphasis intensel. AalbCcDE 4abcco Albce Strong Quote imense U.. - AUT Type in mewer here AUT The information below is from the Warehouse's 2019 annual report. Show the effect on the financial statements by recalculating the ROA (EBIT divided by total assets), and debt to total assets (total liabilities divided by total assets) for what they would be if the lease was capitalised (i.c. that the Warehouse has recorded what you calculated in a and b. rather than recording it as an operating lease). Total Assets Total Liabilities EBIT = $1,050.821 = $568,795 = $102,943 Type in answer and workings bere Page 3 of 4 focum . 209 wards English New Zes and Type here to search - - 16096 4. ENG 5008 PM A1 IN 19 p Search Author File Home AX Cut Insert -0 = HAZ_01.181 - Word Design Layout References Malings Review View Help Times New Rom 12 A A A E ES 21 BI. X *A. 2.A ES= Mir Tape AIMTE - X Share Comments Prind. 2 Replace et Diese Sensity Cditor Abbcc Aalbord: AaBbc Aabbcct AaB AaBbce Acubcc 4oB6CCDX Ambcc 1 Normal 1 No Space Heading 1 Herd ng 2 tle Subtitle SubtleLm.. Emphasis intensel. Aabebe 400cco AcebCam Strong Quote imense U.. 3 format Panter Year Leuse Payment Lease Lich Interest Port Principal Part . You have recently started an internship at an investment fund. Currently, the Warehouse accounts for leases using NZ IAS 17, as opposed to the new lease standard NZ IFRS 16. Accordingly, they have disclosed the information below for operating leases (i.e. leases that are not capitalised), which are all for retail buildings. The Warehouse has also recently issued bonds that pay 530% interest, but has older bonds that pay 6.0% interest Your supervisor has asked you to consider the effect of NZ IFRS 16 on the Warehouse's financial statements and thus valuation, by capitalising the operating leases. To do so, Eirst fill in the lease template below. You will need to calculate the opening lease liability as the present value of minimum lease payments. Remember to justify your choices made for your answer b. Record the journal entries relating to the lease in 2019 (L.e. Year 1) not including the issuance of the lease. The Warehouse deprveiate buildings over a 30 wear life Account Debit Credit Operating leases The Group's for cancelable operating lases many feate to buiongoccupancy lenses and typically prethn ten years. The lates have long terms, escalation clauses and tereveal rights On teneva, the terms of the leases are renegotiated. Comments formu lease payments in relation to carcelable operating leases at balance date are as follows Future ninimum rentals payable 2018 Debit Credit 2-5 Operating leases 001508 712761 Page 2 of CF 1 - 100 316 words English New Zes and Type here to search - 4. ENG M 0 - 9 e ( 4 5006 PM VIR 9 p Search Help Amber COP U = HAZ_01.181 - Word File Home Insert Design Layout References Malings Review View AX Cut Times New Rom12 AA A A E E - 3 Format Painter ter Bi- XA-2-4- === Mir Tape AIMTE - X Share Comments Dlind . Replace Diese Sensity Cditor et 21 - ABCD Aalbcd: AaBbc Aabbcc AaB Aabbccc Acabcc4bce Abc 1 Normal 1 No Space Heading 1 Herd ng2 ble Subtitle SubtleLm.. Emphasis intensel. AalbCcDE 4abcco Albce Strong Quote imense U.. - AUT Type in mewer here AUT The information below is from the Warehouse's 2019 annual report. Show the effect on the financial statements by recalculating the ROA (EBIT divided by total assets), and debt to total assets (total liabilities divided by total assets) for what they would be if the lease was capitalised (i.c. that the Warehouse has recorded what you calculated in a and b. rather than recording it as an operating lease). Total Assets Total Liabilities EBIT = $1,050.821 = $568,795 = $102,943 Type in answer and workings bere Page 3 of 4 focum . 209 wards English New Zes and Type here to search - - 16096 4. ENG 5008 PM A1 IN 19 p Search Author File Home AX Cut Insert -0 = HAZ_01.181 - Word Design Layout References Malings Review View Help Times New Rom 12 A A A E ES 21 BI. X *A. 2.A ES= Mir Tape AIMTE - X Share Comments Prind. 2 Replace et Diese Sensity Cditor Abbcc Aalbord: AaBbc Aabbcct AaB AaBbce Acubcc 4oB6CCDX Ambcc 1 Normal 1 No Space Heading 1 Herd ng 2 tle Subtitle SubtleLm.. Emphasis intensel. Aabebe 400cco AcebCam Strong Quote imense U.. 3 format Panter Year Leuse Payment Lease Lich Interest Port Principal Part . You have recently started an internship at an investment fund. Currently, the Warehouse accounts for leases using NZ IAS 17, as opposed to the new lease standard NZ IFRS 16. Accordingly, they have disclosed the information below for operating leases (i.e. leases that are not capitalised), which are all for retail buildings. The Warehouse has also recently issued bonds that pay 530% interest, but has older bonds that pay 6.0% interest Your supervisor has asked you to consider the effect of NZ IFRS 16 on the Warehouse's financial statements and thus valuation, by capitalising the operating leases. To do so, Eirst fill in the lease template below. You will need to calculate the opening lease liability as the present value of minimum lease payments. Remember to justify your choices made for your answer b. Record the journal entries relating to the lease in 2019 (L.e. Year 1) not including the issuance of the lease. The Warehouse deprveiate buildings over a 30 wear life Account Debit Credit Operating leases The Group's for cancelable operating lases many feate to buiongoccupancy lenses and typically prethn ten years. The lates have long terms, escalation clauses and tereveal rights On teneva, the terms of the leases are renegotiated. Comments formu lease payments in relation to carcelable operating leases at balance date are as follows Future ninimum rentals payable 2018 Debit Credit 2-5 Operating leases 001508 712761 Page 2 of CF 1 - 100 316 words English New Zes and Type here to search - 4. ENG M 0 - 9 e ( 4 5006 PM VIR 9