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An influential cabal of nine international
leasing and business organisations has demanded re-exposure of the
controversial proposed accounting standard for leases.

In a letter to the trustees of the IFRS
(International Financial Reporting Standards) Foundation, the
leasing lobby also called for issuance of the final standard to be
delayed for six months to the end of 2011.

The group, comprising Australia, Canada,
China, Japan, Leaseurope, and the US, and global manufacturer
bodies, stated that re-exposure is necessary because “there are
still areas of the proposals where it is unclear that conceptually
sound principles or sufficient simplification have been
achieved”.

“We are concerned that the pace of
re-deliberations is making it extremely difficult for the vast
majority of constituents to follow and understand recent decisions
and analyse their potential implications,” the letter stated.

The IASB (International Accounting Standards
Board) has been re-deliberating on various aspects of its proposed
standard since receiving 800 letters raising a variety of concerns
from those affected by the changes.

While new tentative decisions on issues such
as the treatment of variable rental payments have been welcomed as
an improvement, they fall short of satisfying the group
representing the international leasing community.

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By GlobalData

The group called for “constituents to be given
the opportunity to assess the implications of a very different
model and rational to that exposed in the leases exposure
draft.”

The IFRS Foundation is responsible for
ensuring that the IASB complies with due process when setting
standards.

The letter’s signatories are: The American
Automotive Leasing Association; The Australian Equipment Lessors
Association; The Australian Fleet Lessors Association; The Canadian
Finance and Leasing Association; The China Leasing Business
Association; Japan Leasing Association; Leaseurope; The Truck
Renting and Leasing Association; and The US Equipment Leasing and
Finance Association.

The exposure draft on leases was issued on 17
August 2010.

liz.bury@vrlfinancialnews.com