Under a contract between a customer, Charlie (C) and a freight carrier Solutions Ltd (S), S provides
Question:
The contract also requires S to provide an engine and a driver when requested by C. S keeps the engines at its premises and provides instructions to the driver detailing C's requests to transport goods. S can choose to use any one of a number of engines to fulfil each of C's requests, and one engine could be used to transport not only C's goods, but also the goods of other customers (i.e. if other customers require the transportation of goods to destinations close to the destination requested by C and within a similar timeframe, S can choose to attach up to 100 rail cars to the engine.
Required:
Advise Charlie if there is a lease in the contract under IFRS 16 in regard to the cars and the engines?
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Related Book For
Financial Accounting and Reporting
ISBN: 978-1292162409
18th edition
Authors: Barry Elliott, Jamie Elliott
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