The Equipment Leasing and Finance Association (ELFA), which
represents the equipment leasing and asset finance industry in the
United States, has officially responded to the proposed lease
accounting changes affecting the industry.
A discussion paper, Leases: Preliminary Views, was
published by the FASB and IASB earlier this year, which set out the
proposed changes. Responding to this, Kenneth Bentsen Jr, president
of ELFA, said:
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“We support the boards as they seek to establish a sound,
workable accounting standard that applies to the assets and
liabilities arising from lease transactions.
“We find, however, that the lease accounting model as proposed
is unduly complex and will impose a compliance burden on lessees
that will not result in a significant improvement in the quality or
reliability of financial information. The model seems to be overly
concerned with preventing potential abuse, rather than accurately
reporting the economic aspects of leasing transactions.”
Earlier this month the UK’s Finance & Leasing Association
(FLA) voiced similar concerns.
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