Leaseurope continues to try to persuade the
IASB and FASB to come up with “reasonable proposals” for future
IFRS leasing accounting.
The two boards held meetings this week and the
IASB has said it will consider a “hybrid approach” which could see
lessors applying to five accounting models.
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Leaseurope, which represents the industry in
Europe, claims this “appears to be the result of yet another
attempt by standard setters to come up with quick-fix accounting to
reach converged IFRS and US GAAP approaches under unrealistic
timeframes”.
The body has said the hybrid model could mean
many leases will be accounted for in a way that “completely fails
to represent the economics of these transactions”.
It is therefore calling on the IASB to look at
the issue again and to “apply a solution that reflects the economic
substance of lease transactions”.
It added Leaseurope and other stakeholders had
repeatedly tried to put forward such a solution.
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