Prosper Ltd has requested your help in preparing their financial statements as they are unsure of the new requirements of NZ IFRS 16 Leases for lessors.

You are provided with the following lease details and the table for the lessor:

Required:

(i) Prepare financial statements, over the lease period, to reflect the effects of the lease.

(ii) Explain why there was a payment of $20 000 made by the Lessee to the Lessor on 31 March 2021.

 
 

Prosper Ltd is the:e Commencement date Lease term Lease classification Fixed payments per annum at year end Residual value guarantee (RVG) as per lease contract FV of the guaranteed portion of asset at the end of lease UGRV at the end of lease IDC incurred by the lessor FV of the underlying asset The interest rate implicit in the lease Economic life of the asset The depreciation method used by the lessor The relevant present value discount factors are: Present value of $1 in n periods Present value of an annuitye Interest income SCF classification Lessor 1 April 2019 4 years Finance Lease $189 000 $180 000 $160 000 $300 000 $ 04 $1 006 373 7% 8 years Straight line n = 4 and = 7% 0.7629 3.3872 CFIA