The following scenario relates to questions 276–280
On 1 October 20X6 Fino entered into an agreement to lease twenty telephones for its team of sales
staff. The telephones are to be leased for a period of 24 months at a cost of $240 per telephone
per annum, payable annually in advance. The present value of the lease payments at 1 October
20X6 is $9,164.
On 1 April 20X7, Fino entered into an agreement to lease an item of plant from the manufacturer.
The lease required four annual payments in advance of $100,000 each commencing on 1 April 20X7.
The plant would have a useful life of four years and would be scrapped at the end of this period.
The present value of the total lease payments is $350,000.
Fino has a cost of capital of 10%.
How much would be charged to Fino’s statement of profit or loss for the year ended
30 September 20X7 in respect of the telephones if Fino applied the exemption permitted
under IFRS 16 Leases?