Question 4:

Tasty Ltd (customer), a food company, enters into a contract with Eastern Horizon shopping centre (supplier) to use a space in the shopping centre to sell its goods for a three-year period. The contract states the amount of space and that the space may be located at any one of several areas within the shopping centre. Supplier has the right to change the location of the space allocated to Customer at any time during the contract term. There are minimal costs to Supplier associated with changing the space for the Customer; Customer uses a kiosk (which Customer owns) to sell its goods that can be moved easily. There are many areas in the shopping centre that are available and which would meet the specifications for the space in the contract.

Required:

In accordance with AASB 16 Leases, identify whether the contract between Tasty Ltd andEastern Horizon shopping centre contains a lease. Justify your answer.