Homework Answers
Answer
The following is not required in order for a contract to contain lease -
The provider cannot have the right to substitute the alternative assets during period of use and could benefit economicly from such a substitution.
Explanation -
The following is required in order for a contract to contain a lease -
The asset should be identified in lease.
The customer can substitutionally derive all of the benefits from using the assets.
The customer can direct the use of asset throughout the contract terms.
But the provider cannot substitute the alternative assts and can't take benefits from such a substitution.
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