Requirement 3 - Financial Accounting and Reporting In addition to the information in the pre-seen material, the following further information has now been ascertained, in relation to the lease: Following analysis performed by Gayle Vojic, and discussion with Harry Edwards, Grains Coffee Ltd decided to lease four of the fully equipped commercial mobile coffee vans, as opposed to buying them. Each vehicle has a useful economic life of 4 years and a residual value of 18,000 on the last day of their useful economic life. The four vehicles have both been leased for their full economic life of 4 years from 1 January 2021, and the lease contracts are non-cancellable. The first lease payment of 14,600 per vehicle being made on that date. Additional direct costs of 3,200 were incurred as part of the costs of leasing each vehicle. The rate implicit in the lease is 11%. Grains Coffee Ltd depreciates its vehicles on a straight-line basis. Part 2 Show how the lease transaction will affect the financial statements of Grains Coffee Ltd for the lease period for the financial years ended 31 December in accordance with IFRS 16 Leases. (12 marks) (Total: 15 marks)