My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Under a contract between a customer, Charlie (C) and a freight carrier Solutions Ltd (S), S provides C with 10 rail cars for five years. The cars, which are owned by S, are specified in the contract. C determines when, where and which goods are to be transported using the cars. When the cars are not in use, they are kept at C’s premises. C can use the cars for another purposes (for example, storage) if it so chooses. If a particular car needs to be serviced or repaired, S is required to substitute a car of the same type. Otherwise, and other than on default by C, S cannot retrieve the cars during the five-year period. The contract also requires S to provide an engine and a driver when requested by C. S keeps the engines at its premises and provides instructions to the driver detailing C’s requests to transport goods. S can choose to use any one of a number of engines to fulfil each of C’s requests, and one engine could be used to transport not only C’s goods, but also the goods of other customers (i.e. if other customers require the transportation of goods to destinations close to the destination requested by C and within a similar timeframe, S can choose to attach up to 100 rail cars to the engine. Required: Advise Charlie if there is a lease in the contract under IFRS 16 in regard to the cars and the engines.
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