QUESTION 7.1 (20 marks)(24 minutes) Klip Ltd entered into a contract with Techlog SA Ltd to make use of a specialised printer and computer starting on 1 January 20.17. The contract meets the requirements of a lease in terms of IFRS 16, Leases. The asset is classified as a low-value asset. Klip Ltd makes use of the recognition exemption in terms of IFRS 16, Leases for all short-term and low-value assets. REQUIRED: (a) Discuss the accounting treatment of Klip Ltd for the year ended 31 December 20.17 (b) Calculate: 1. Equalised monthly instalments 2. Prepaid expense or accrued expense as at 31 December 20.17 3. Prepaid expense or accrued expense as at 31 December 20.18 (c) Disclose the low-value lease asset in the following notes to the annual financial statements of Klip Ltd for the year ended 31 December 20.18. - Prepaid expense - IFRS 16, leases (low-value assets) Your answers must comply with the International Financial Reporting Standards (IFRS). Ignore any income tax and VAT implications. Round all amounts to the nearest Rand. QUESTION 7.1 (20 marks)(24 minutes) Klip Ltd entered into a contract with Techlog SA Ltd to make use of a specialised printer and computer starting on 1 January 20.17. The contract meets the requirements of a lease in terms of IFRS 16, Leases. The asset is classified as a low-value asset. Klip Ltd makes use of the recognition exemption in terms of IFRS 16, Leases for all short-term and low-value assets. REQUIRED: (a) Discuss the accounting treatment of Klip Ltd for the year ended 31 December 20.17 (b) Calculate: 1. Equalised monthly instalments 2. Prepaid expense or accrued expense as at 31 December 20.17 3. Prepaid expense or accrued expense as at 31 December 20.18 (c) Disclose the low-value lease asset in the following notes to the annual financial statements of Klip Ltd for the year ended 31 December 20.18. - Prepaid expense - IFRS 16, leases (low-value assets) Your answers must comply with the International Financial Reporting Standards (IFRS). Ignore any income tax and VAT implications. Round all amounts to the nearest Rand