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  "documentTitle": "Dollarama Inc. (DOL)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2018-10-31 00:00:00",
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  "notes": "The slide uses a table to compare implied lease terms and calculates the impact on EBIT if schedules were aligned.",
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      "text": "Mismatch in implied lease term inappropriately inflates EBIT",
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      "text": "Lease term implied by leasehold depreciation expense 2-3x greater than that implied by amortization of tenant allowance",
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      "text": "Dollarama changed its depreciation schedule for leasehold improvements (store fixtures) in FY 2015, moving from a 10-year to a 15-year expected life. However, management did not concurrently lengthen the amortization schedule for tenant inducements.",
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      "text": "While the financial impact of this adjustment is limited, signs of accounting impropriety do not reflect well on management and cast doubt on the rest of Dollarama’s reports and accounting practices",
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      "text": "The Corporation typically enters into leases with base terms of ten years and options to renew for one or more periods of five years each. The average time to expiration of the Corporation's leases is approximately five years. — Dollarama AIF p. 11",
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      "text": "1) FY 2015 Annual Report... 2) DOL states in its AIF... 3) See governance slide on Huw Thomas",
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