Assume a company pays $10,000 per month plus 2% of sales ("a variable rent charge") to occupy a retail space in a mall. The lease agreement has a 3-year noncancelable term. Based on prior history in that location, the company estimates that its variable rent charge will amount to approximately $1,000 per month.

Using the Conceptual Framework, evaluate whether this variable rent charge meets the definition of a liability (USE CON 6 to answer this question). NOTE: my advice is to define what a liability is according to CON 6 and then to address the components of the above scenario which make it either more, or less like a liability.