Question
The City of Kokomo (The council) has recently made substantial cuts to its community transport service. It will now provide such services only in cases
The City of Kokomo (The council) has recently made substantial cuts to its community transport service. It will now provide such services only in cases of great need, assessed on a case-by-case basis. It has entered into a two-year contract with BusFleet Ltd for the use of one of its minibusses for this purpose. The minibus must seat ten people, but BusFleet Ltd can use any of its ten-seater minibusses when required. The minibusses are held on BusFleet Ltd’s premises and are only made available to the council on request
Required:
In accordance with IFRS16 / AASB 16 Leases, identify whether the contract between the City of Kokomo and BusFleet Ltd contains a lease.
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Answer Relevant Guidance of IFRS 16 An identified asset is an asset that is either explicitly identified in the contract or is implicitly specified by ...
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael H. Granof, Saleha B. Khumawala
6th edition
978-1-119-4958, 9781118473047, 1118155971, 1118473043, 978-1118155974
