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May 3, 2019 at 6:17 am
where are the illustrative examples?
July 16, 2020 at 10:26 am
He said you should search for them
February 4, 2019 at 5:14 am
What’s the difference b/w a particular railcar and a specified railcar? If both are same then how do we figure out the supplier has sub rights?
December 18, 2019 at 3:17 pm
January 3, 2019 at 4:51 am
youre hands down the most entertaining tutor. lol i greatly enjoyed sbr because of you otherwise id be dozing off. Your energy in delivering lecture on what could be a dry subject, is lauded..
August 11, 2018 at 11:01 am
If a contract is not a lease, what is it? How is it accounted for?
August 17, 2018 at 2:23 pm
The customer would treat the payments as an expense through profit or loss on an accruals basis.
December 4, 2018 at 1:04 pm
It will treated as contract that Creates a Financial Asset and Financial Liability in the respective Parties. Essentially in the books of the “Lessee” this a loan arrangement
August 9, 2018 at 11:24 am
I think these examples is very confusing. First in terms control and right to substitute: “10 cars of particular type”… The lessor might have three thousand of this type of rail cars (for example three wheeled red rail cars) and makes available juts 10 of them to the lessee when needed. Also there is no information who controls the cars when they are not transporting the goods of the lessee, yes? it leads us to second confusion: does the lessee receive substantially all benefits from the use of the asset during these years? I think there is not enough info about it in the scenario. Am I wrong?
The example has tried to keep it as simple as possible, but yes we could have included more information to determine if it is or isn’t a lease.
The specific contracts between the two parties would give the details of the rail cars used and whether or not all of the economic benefits are received, but in the absence of this information the assumption has been that the particular cars are such that the customer controls their usage and receives the economic benefit for their usage.
If additional information was included at an early stage within the lectures then I doubt that it would help and may lead to students struggling before they then get in to the rest of the chapter, but I like how you’ve been thinking about the issue, well done.
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