Moshman Ltd enters into a contract with Lessor Ltd for the use of a mining truck for one week

to replace a truck that has broken down. The truck is to be used to transport ore from central

Queensland to the port of Brisbane. Lessor does not have substitution rights.

The ore to be transported, and the timing and location of pick-up in central Queensland and

delivery at the port of Brisbane are specified in the contract. Only the amount of ore specified

in the contract is permitted to be transported on this truck for the one-week period of the

contract. The contract specifies a maximum distance that the truck can be driven. Moshman

Ltd is responsible for driving the truck from central Queensland to the port of Brisbane and is

able to choose the details of the journey (including speed, route and rest stops) within the

parameters of the contract. Moshman Ltd does not have the right to continue using the truck

after the specified trip is complete.

REQUIRED:

Identify whether a lease exists for Moshman Ltd in accordance with the provisions of AASB

16 'Leases'. Provide any necessary explanations to support your answer.