Target Corporation follows accounting rules in reporting its lease obligations. However, the vast majority of their store leases are not reported as liabilities on their balance sheet. Similar to other retail establishments, Target structures their leases to avoid reporting their leases on the balance sheet.

1. Why does Target Corp. wish to avoid reporting its store leases on the balance sheet?

2. Would a principles-based approach continue to allow Target Corp. to avoid reporting its store leases on the balance sheet?

3. Which qualitative characteristic(s) of accounting information is violated when Target Corp. avoids reporting its store leases on the balance sheet?