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IFRS 16 – Identifying a Lease or not

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 16 – Identifying a Lease or not

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
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  • January 17, 2018 at 10:21 am #430746
    chamakc
    Member
    • Topics: 9
    • Replies: 4
    • ☆

    I went through Example 2: Identifying a lease

    I looked at scenario 2, and it mentioned “specified quantity of goods.” I wanted to ask you whether this type of restriction on the use of the asset would need to be considered on determining whether the contract is a lease or not??

    For example lets say the rail car had a storage capacity of 4 tonnes of goods and Peach could only store a maximum limit of 2 tonnes of goods on each journey. Would this restriction need to be considered to determine whether the entity can receive substantially all the economic benefit from using the asset??

    January 19, 2018 at 9:27 pm #431393
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7163
    • ☆☆☆☆☆

    Hi,

    I’d have thought that it would have to be taken into consideration as if we are only able to store a specified limit on the journey then we wouldn’t be getting all the economic benefit from using the asset.

    Thanks

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