Identified assets

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Identified assets

Category: Case Study

Subcategory: Accounting

Level: College

Pages: 1

Words: 275

Defining Assets in Contracts

Defining Assets in Contracts
Logical Logistics’ signed vendor contracts with Fly-By-Air, Trucking Company, Warehouse Company, and Sea by Boat and the contracts specified the terms and conditions of shipping goods and services for the company. The vendors’ contracts contain implicitly defined assets at the start of the lease and determine control of the asset (Erel et al., 2015). Costs associated with terms of the lease represent liabilities and assets of both companies and the importance of maintaining those agreements due to the nature of the business and supply and demand for shipping products.
Fly-By-Air’s contract specifically enables Logical Logistics to use fifty aircraft in transporting goods and services. The agreement does not permit Fly-By-Air to utilize unused space to haul competitor goods. The use of empty storage space defines assets to Logical Logistics and indicates the right to control the asset of shipping (Erel et al., 2015).
Trucking Company’s contract and Sea-By Boat’s contract indicates Logical Logistics does not control the asset of shipping materials and scheduling. If there is excess storage space, Trucking Company maintains the right to the area and determines shipping dates and times for products. Sea-by-Boat uses their employees and sets guidelines for storage products and employees. Logical Logistics doesn’t specify the conditions of the assets and leases.
Warehouse Company g…

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