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Hello Tutor,
”IFRS 16 says that a customer does not have the right to use an identified asset if the supplier has a practical ability to substitute an asset for an alternative and if it would be economically beneficial for them to do so”.
My question is, if one of the clause is for the lessor to provide replacement if the asset breaks down or no longer functions, it will definitely be beneficial for the lessee. So in this case will the lessee still have right to use this asset?
Thank you.
Replacement in the event of breakdown – I would have thought it was a lease.
Replacement when it’s needed by the lessee, in this case, the lessee will have the right to use asset, correct?
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