Question1 Study the scenario bedowardanswer the question that follows Ais (Fty) Lid( Ais'), On 1 July 2016 Cease Pty Lide teredir to a contract withAis (Fly) Lid(Ais'), intensof which Aisrecaved thengot to use, at its discretion afled of 100noda vendes for a paiodd three years These notor verides are notor casas ddefined ins 1(1) of the ValueActed TaxAct, 1981 (At 89 of 1991), as anadded ardaed asmila nude andsee Cease hasareyear extensionquothet wil not likely be caused by Ais Inaddition Aishas the quionto purchased the nato verides at thee do the contract tam A inceptionit was likelythat Arsvoldeause the quionto purchase the ndo velhides The contract stipulates that Cleanse accepts the full risk of destructionar loss of the notar verdes and asa nes al didigetions inrespect of insurance. Ais accepts the full risk of narterrace and repairs and is required to ranhouse Cheese for insurance The 100nato vehides are ida thed by registrationnumber in the contract. Unless requested to co so by Ais Close nay not abateavede inthefiled for adha ge Ariswil payR010 15(rd. W) at the beginning of eachnothas coachactionfor theused thendo verides Neither Arsro Cleaceira meday intid direct costs withrespect to the leave Theirdene tad rated borowing for Ais is 115%qpa amadthedy loatheudet fo the 10Ondo vehideswas R12091 82 (ed. \\T). The totad finance cost of F5214 784isstipulatedinthe contract. Thecontract was conductedaddharvey of the notor veides took place on 1July 2016 The first instanart was pad on 1 July 2016arda abeget panetshavebeennad on the respective de cites Ais etinates the Leful life of noo vendes to befive years Arsuesal vendeseventy throughout theyear. Ais pods shot- temvdide re tal sdutions Aisis a registered categoy BVAT vencor, nates 100/taxable supplies andhasadreyer end Intensd Aiss accounting policy, aseds with an indvid d valued less than R25 000 are regarded as lowdue asacts Required Discuss the accounting treatment of the contract with Cheese intestatenet of financial positioned Aisfar thereporting period ended 30June2017 intens of Intentiond Financial Reporting Stardads Linit your dsa sionto IFRS16 Leases . Induce al relevant dalations . Pardal anouts to the nearest rand . Asned aourts are nateia . Iguea net tax . Asnea\\Traded 19%