A soft toys retailer (Customer) enters into a 3 year contract with a multi-level shopping centre operator (Supplier) to use a kiosk space in its shopping centre to sell its soft toys. The contract specifies the kiosk size of the space and that the space can be located at any one of the levels within the shopping centre. The Supplier has the right to change the location of the kiosk space allocated to the Customer at any time during the contract period at minimal costs. The Supplier has many available spaces of the same kiosk size which meet the criteria specified in the contract. Customer uses its own kiosk that it can move easily to sell its soft toys. Which of the following is correct in accordance with AASB 16 Leases?

A soft toys retailer (Customer) enters into a 3 year contract with a multi-level shopping centre operator (Supplier) to use a kiosk space in its shopping centre to sell its soft toys. The contract specifies the kiosk size of the space and that the space can be located at any one of the levels within the shopping centre. The Supplier has the right to change the location of the kiosk space allocated to the Customer at any time during the contract period at minimal costs. The Supplier has many available spaces of the same kiosk size which meet the criteria specified in the contract. Customer uses its own kiosk that it can move easily to sell its soft toys. Which of the following is correct in accordance with AASB 16 Leases?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Similar questions

Develop a balanced scorecard for purchasing and supply at an agicultural equipment manufacturer. Explain how a balanced scorecard will be necessary for the successful implementation of the Smart Logistics Initiative.
Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the “Aerosoles” brand at a total cost of $54,000. The following transactions, relating to the “Aerosoles” brand were completed during the quarter: October 3 Purchased 45 pairs of shoes at a cost of $1,900 each. October 15 Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780 October 26 Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%. November 10 Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000. November 14 Owing to an increased demand for this brand, the manager of Classique purchased 80 additional pairs of the “Aerosole” brand at a unit cost of $2,500, but additionally there was freight charge of $100 on each pair. November 24 Sold 60 pairs of shoes to Big Buy Company at a price of $3,600 each. November 30 A physical…
A pilot for a private jet stops for refueling in San Antonio. Topper Fuels offers him a case of premium Tequila to refuel with them (a total retail value of $423 to the pilot). For refueling, inspections, and minor repairs, Topper charges $2,900, over $400 more than the least expensive fuel company. What has happened to the company that owns the private jet
If the delivery term in the parties’ contract for the sale of goods is FOB the place at what the goods originated, absent any other agreement, the buyer is responsible for making reasonable arrangements for the goods to be shipped. true or false
As a supply chain manager, would you rather have a supplier with a five days average lead time with a plus or minus three-day variance or supplier with a ten-day lead time that was plus or minus one day in its delivery?
Kelly Clarkson moved from unincorporated Nashville which is in Davidson County to Atlanta without selling her house. Blake found out she moved and asked if he could purchase the property if the City decides to incorporate the house into the City of Nashville. Kelly agreed and the contract stated that if the City of Nashville incorporates the house into the City then Kelly would sell the house to Blake. This is an example of _________. Question options: An options contract A dumb move A condition subsequent A condition precedent
Post a plan for safe handling of infectious waste. What types of items would be included in the category. What would your policy say about proper disposal.
1) Supplier and Retail Firm A retail-level firm has a contract to sell a single unit of a good to a consumer for 10$. Not delivering the good leads to no payment from the consumer along with a penalty of 5$ to be paid to the consumer by the firm as per the contract between the firm and the consumer. The retail-level firm must also pay an operating cost of 3$ in order to stay in business and in order to be able to deliver the good. This cost must be paid even if the firm decides not to sell the good. Failing to deliver the good and having to pay the penalty and the other costs would lead to the retail firm going out of business. A supplier firm is the only firm in the world that can build the good. The supplier can build the good for 2$ and does so after an order is made. The supplier cannot sell directly to the consumer and there is only one retail firm in this market. Both the supplier and the retailer only care about their own private profit. There is no contract at this point…
The MaskMake Company manufactures a variety of masks for the healthcare professionals around Ireland. Company vans are used to deliver local orders directly to retail outlets. When their business was small, the drivers of the vans were free to take routes of their choice as they made the delivery rounds to the retail outlets. However, as the business has grown recently due to the outbreak, transportation and delivery costs have become significant. In an effort to improve the efficiency of the delivery operation, MaskMake management would like to determine the shortest delivery routes between retail outlets. For example, the following network shows the roads (distance in km) that may be taken between a retail outlet at node 1 and a retail outlet at node 11. 3 3 6 10 11 6 4 10 1 7 4 2 4 10 Determine the shortest route for a van that is currently at node 1 and must make a delivery to node 11. 2. 3.
90 questions remaining Your client insures his/her condominium unit under a Condominium Unit Owners Comprehensive policy. The policy includes $10,000 Property Loss Assessment coverage. The building suffers severe damage in a fire. The Condominium Corporation assesses each unit owner $500 to cover the deductible under its Master Policy on the building. How much would your client's policy pay? OA) 80% of $500 because all Condominium Corporation Master Policies are subject to 80% co-insurance. 8) $500 less the policy deductible. OC) $500.00 CD) Nothing.
Give a detailed explanation of whether the following statements are true or false. • The buyer of an option has an obligation to purchase the underlying asset in the case of a call, or sell in the case of a put, which the seller of an option has the right to deliver in the case of a call, or take delivery in the case of a put. • Call-put parity implies that currency puts and calls written with exercise prices at the forward rate will have different values because, if the foreign interest rate exceeds the domestic rate, the forward rate is at a discount; therefore, the exchange rate is expected to depreciate, making the put more valuable
You are a Supply Chain Procurement Manager working for a large manufacturing company located in North America. Recently, you have found out that one of your suppliers is in contravention of your company’s standards of engagement because they are employing persons aged 14 to 16 years of age. Whilst you would prefer to end the business relationship with this supplier immediately, you have to weigh up the ethical issues with the commercial considerations including; the low cost of the supplies and the history of reliability of delivery from this supplier. Required: Based on your knowledge of corporate social responsibility, as well as supply chain logistics, what is the best course of action in this situation? Discuss.