Lessors from across Europe attended the “Putting Leasing on the
Line” forum, hosted jointly by the Finance & Leasing
Association (FLA) and Leaseurope last week (May 22), to discuss the
preliminary views on lease accounting that were published recently
by the International Accounting Standards Board (IASB) and the
Financial Accounting Standards Board (FASB).
The European forum considered the standard setters’ long-awaited
discussion paper that focuses on putting all types of leases on
firms’ balance sheets.
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According to the FLA, the European leasing industry is concerned
that the standard setters are considering an excessively burdensome
approach for accounting for leases.
“We believe that the proposed changes could have wide-reaching
consequences for companies,” said Stephen Sklaroff, director
general of the FLA.
“Our concern is less about the absolute level of changes to
balance sheets and income statements, because we know that UK
companies use leasing for sound business reasons. We are more
concerned about the complexity of the new regulations that
preparers of accounts could have to cope with.
“The IASB needs to avoid gold-plating new regulations, and
should ‘think small first’ by carefully examining the impact on
small and medium-sized businesses before making any decisions,” he
added.
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