An entity must identify whether a contract contains a lease, which is the case if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the entity should has both of the following:

(a) The right to obtain substantially all of the economic benefits from use of the identified asset; and

(b)The right to direct the use of the identified asset. This arises if either:

    (i) The customer has the right to direct how and for what purpose the asset is used during the whole of its period of use, or

    (ii) The relevant decisions about use are pre-determined and the customer can operate the asset without the supplier having the right to change those operating instructions.

A leasee does not control the use of an identified asset if the lessor can substitute the underlying asset for another asset during the lease term and would benefit economically from doing so.

If the supplier has a right or an obligation to substitute the asset only on a particular date or the occurrence of a specified event, the supplier’s substitution right is not substantive.(lessor是否有substantive right to substitute the underlying asset?)

1.Coketown Council has entered into a five-year contract with Carefleet Co, under which Carefleet Co supplies the council with ten vehicles for the purposes of community  transport. Carefleet Co owns the relevant vehicle, all ten of which are specified in the contract. Coketown Council determines the routes taken for community transport and the charges and eligibility for discounts. The council can choose to use the vehicles for purposes other than community  transport.

When the vehicles are not being used, they are kept at the council’s offices （我愛用不用,，你不能管）and cannot be retrieved by Carefleet unless Coketown Council defaults on payment. If a vehicle needs to be serviced or repaired, Carefleet is obliged to provide a temporary replacement vehicle of the same type.

解析：This is a lease. There is an identifiable asset, the ten vehicles specified in the contract. The council has a right to use the vehicles for the period of the contract. Carefleet Co does not have the right to substitute any of the vehicles unless they are being serviced or repaired. Therefore Coketown Council would need to recognise an asset and liabililty in its statement of financial position.

2. A coffee company enters into a contract with an airport operator to use a space in the airport to sell its goods for a three-year period. The contract states the amount of space and that the space may be located at any one of several boarding areas within the airport. Supplier has the right to change  the location of the space allocated to Customer at any time during the period of use.

There are minimal costs to Supplier associated with changing the space. Customer uses a kiosk (that it owns) that can be moved easily to sell it goods. There are many areas in the airport that are available and that would meet the specifications for the space in the contract.

解析：The contract does not contain a lease. Although the amount of space is specified, there is no identified asset. The contract is for space in the airport, and this space can change at the discretion of Supplier. Supplier has the substantive right to substitute the space Customer uses and would benefit economically from substituting the space. (Supplier can make the most effective use of the space)