Skip to main content
IFRS Academy

CERTYNEX IFRS ACADEMY

Search the Academy

Home
My learning path
Exercises & quizzes
Cases
Workpapers
Exams
My progress

Single choiceAdvancedPublished

Question · Whether a contract contains a lease

A supplier makes a specified bottling line available to Dorlan for six years; the line is installed and fixed in the Dorlan plant. The contract allows the supplier to replace it with an equivalent line. A replacement would require costly dismantling and transport, with no identifiable gain for the supplier. The supplier nevertheless points to the possibility that a future customer might one day agree to pay an above-market price for this line, a possibility considered unlikely at the inception date. Which analysis should be retained?

Your answer

← Back to the concept