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Question · Disclosures by the lessee

The clothing retailer Iris leases 140 stores. For most of them, the rent includes a fixed part and a variable part equal to a percentage of the store's sales; the variable part, not included in the lease liability, represents almost half of the payments made. The current note is limited to the mandatory amounts. Write a recommendation to the CFO on the additional qualitative and quantitative information to be considered.

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Judgment question: compare your answer with the criteria and the model explanation.

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