The International Accounting Standards
Board (IASB) and the US Financial Accounting Standards Board (FASB)
are currently in the process of developing a new standard for lease
accounting. A Discussion Paper, setting out the IASB’s initial
views on how leases should be accounted for, is expected in the
first quarter of 2009.
Leaseurope, the trade body representing
leasing and automotive rental in Europe, has published a paper that
provides an overview of the industry’s key concerns on the
direction the leases project is taking.
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Mark Venus (BNP Paribas), chairman of
Leaseurope’s Accounting Committee, warned: “Businesses should be
aware that the proposed changes to lease accounting standards will
have wide-reaching consequences.
“This is an issue that will affect all
firms who choose to lease or rent their property or equipment.
Standard setters are considering an approach that would create
immense complexity for the preparers of accounts and will
dramatically impact their financial statements.”
Leaseurope chairman, Rüdiger von
Fölkersamb of Deutsche Leasing, commented: “The European
leasing industry would not like to see a standard that is so
complex it may overshadow the economic benefits of the products we
provide.
“But this is an issue that goes far beyond
Leaseurope’s constituents and is particularly important in the
current economic climate where businesses are struggling to find
financing. Leasing can often be a viable alternative source of
funds for these companies.”
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