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4 Points Customer enters into a contract with Supplier to purchase all of the power...

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Accounting

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4 Points Customer enters into a contract with Supplier to purchase all of the power produced by an explicitly specified power plant for 5 years. Supplier is not allowed to provide substitute power unless the plant requires repair or maintenance. Supplier operates the plant in accordance with a predetermined schedule regarding the timing and quantity of power produced for Customer. Required: Based on AASB 16 Leases, analyse whether the above contract between Customer and Supplier should be treated as a lease contract. Please type your answer in the answer box below. Enter your answer here 4 Points Customer enters into a contract with Supplier to purchase all of the power produced by an explicitly specified power plant for 5 years. Supplier is not allowed to provide substitute power unless the plant requires repair or maintenance. Supplier operates the plant in accordance with a predetermined schedule regarding the timing and quantity of power produced for Customer. Required: Based on AASB 16 Leases, analyse whether the above contract between Customer and Supplier should be treated as a lease contract. Please type your answer in the answer box below. Enter your answer here

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