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Customer X enters into a three-year contract with Supplier Y for the use of a bus The bus shall be used as a shuttle service for customer X’s guests Supplier

Customer X enters into a three-year contract with Supplier Y for the use of a bus The bus shall be used as a shuttle service for customer X’s guests Supplier Y owns a fleet of buses and each of these buses meets the specifications of Customer X The contract requires Supplier Y to make available for Customer X the use of a bus throughout the duration of the contract Supplier Y provides a driver for the bus and decides which one of it’s many buses will be provided to Customer X This would depend, for example, on the number of guest that will be using the bus and the destination whether long trip or short trip Customer X decides the time of use and the destination Only the guests of Customer X shall be the passengers when the bus is used After Customer X’s use, the bus is kept in Supplier Y’s premises

Requirement: Identify if the contract is ( or contains) a lease using the guidance in PFRS 16 Provide brief explanations

May 05 2020 View more View Less

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