On 2 January 20.16, GMF signed a contract with Ship Out Limited, a shipping company, to provide a specific type of cargo vessel to ship consignments of goods from Durban harbour to Cape Town harbour for GMF over the next three years . The contract specifies the quantity, grade and packaging of the consignments of goods that will be shipped as well as the date of departure, arrival and route to be followed. The goods will occupy substantially all of the capacity of the ship. Ship Out Limited operates and maintains the ship and is responsible for the safe transport of the consignments of goods. GMF is not permitted to hire another operator for the ship or to operate the ship itself. Discuss, with reference to IFRS 16 Leases whether the arrangement with Ship Out Limited contains a lease.
On 2 January 20.16, GMF signed a contract with Ship Out Limited, a shipping company, to provide a specific type of cargo vessel to ship consignments of goods from Durban harbour to Cape Town harbour for GMF over the next three years .
The contract specifies the quantity, grade and packaging of the consignments of goods that will be shipped as well as the date of departure, arrival and route to be followed. The goods will occupy substantially all of the capacity of the ship.
Ship Out Limited operates and maintains the ship and is responsible for the safe transport of the consignments of goods. GMF is not permitted to hire another operator for the ship or to operate the ship itself.
Discuss, with reference to IFRS 16 Leases whether the arrangement with Ship Out Limited contains a lease.
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