Question 7 - IFRS 16 LEASES Kamel Ltd (Kamel) is a manufacturing company located in the Savannah Region. The reporting date of Kamel is 31 December and the company reports under International Financial Reporting Standards (IFRSs). Kamel intends to expand its production to take advantage of emerging economic activities in the new region. On 1 January 2020, the company entered into a lease agreement for a production equipment which has a useful economic life of 8 years. The lease term is for four years and Kamel agrees to pay annual rent of GH50,000 commencing on 1 January 2020 and annually thereafter. The interest rate implicit in the lease is 7.5% and the lessee's incremental borrowing rate is 10%. The present value of lease payments not yet paid on 1 January 2020 is GH130,026. Kamel paid legal fees of GH1,000 to set up the lease. 12 Required: Prepare extracts for the Statement of Financial Position and Statement of Profit or Loss for 2020 and 2021, showing how Kamel should account for this transaction