Customer X enters into a contract with Supplier Y for the use of a specific car for one (1) year. The car shall be modified according to the specification of Customer X . Customer x shall have exclusive use of the car during the duration of the contract. If at any time the car is not working properly, Supplier Y shall provide a replacement power of the same type. Supplier Y cannot retrieve the car during the duration of the contract for reasons other than default of Customer X. At the time of signing of contract, Supplier Y does not yet have the car described in the contract. Requirement: Identify if the contract is (or contains) a lease using the guidance in PFRS 16. Provide a brief explanation. Make it brief and concise. Explain it in a simple way. 3 sentences is enough. PLEASE NO PLAGIARISM I WILL REPORT YOU!

Customer X enters into a contract with Supplier Y for the use of a specific car for one (1) year. The car shall be modified according to the specification of Customer X . Customer x shall have exclusive use of the car during the duration of the contract. If at any time the car is not working properly, Supplier Y shall provide a replacement power of the same type. Supplier Y cannot retrieve the car during the duration of the contract for reasons other than default of Customer X. At the time of signing of contract, Supplier Y does not yet have the car described in the contract. Requirement: Identify if the contract is (or contains) a lease using the guidance in PFRS 16. Provide a brief explanation. Make it brief and concise. Explain it in a simple way. 3 sentences is enough. PLEASE NO PLAGIARISM I WILL REPORT YOU!

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 9Q

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