Phala Phala (Proprietary) Limited (Phala Phala) is a supplier of stationery consumables and equipment primarily to a Limpopo-based clientele (schools, government departments and other companies), founded in 2020 by Mr. Ankole Cattle when he lost his job during the Covid-19 pandemic retrenchments. Phala Phala has a 31 October reporting date and applies the International Financial Reporting Standards. Mr. Cattle (who is also the managing director), decided to lease laptops from Jagermeister Electronics, to be used in their offices for administration purposes. Each laptop can be used on its own. The lease commencement date is 01 October 2017. Five laptops were leased at R1 000 per month per laptop. The lease contains a clause that each year the lease instalment will decrease by 10% per annum. The lease term is for a period of three years. The value of a new laptop is R12999. Mr. Cattle is of the opinion that these laptops constitute low value items in accordance with IFRS 16. You may assume that the rental agreement of the laptops contains a lease as defined in IFRS 16 Leases and per the VAT Act, this lease meets the definition of a lease agreement. Phala Phala (Proprietary) Limited (Phala Phala) is a supplier of stationery consumables and equipment primarily to a Limpopo-based clientele (schools, government departments and other companies), founded in 2020 by Mr. Ankole Cattle when he lost his job during the Covid-19 pandemic retrenchments. Phala Phala has a 31 October reporting date and applies the International Financial Reporting Standards. Mr. Cattle (who is also the managing director), decided to lease laptops from Jagermeister Electronics, to be used in their offices for administration purposes. Each laptop can be used on its own. The lease commencement date is 01 October 2017. Five laptops were leased at R1 000 per month per laptop. The lease contains a clause that each year the lease instalment will decrease by 10% per annum. The lease term is for a period of three years. The value of a new laptop is R12999. Mr. Cattle is of the opinion that these laptops constitute low value items in accordance with IFRS 16. You may assume that the rental agreement of the laptops contains a lease as defined in IFRS 16 Leases and per the VAT Act, this lease meets the definition of a lease agreement