FLA comments on new Lease Accounting Standard

Commenting on the publication of IFRS 16, the International Accounting Standards Board’s (IASB) new leasing standard, Simon Goldie, Head of Asset Finance at the Finance & Leasing Association (FLA), said:

“We remain concerned that the Standard could put an additional burden on lessees and potentially deter some of them from using leases.

“The next step in the process is for the new standard to be considered by the relevant European and national adopting authorities. We will continue to make our concerns clear to the European Financial Reporting Advisory Group (EFRAG), the European Commission and Parliament, and the UK Financial Reporting Council.”

Notes to editors

1. The IASB has today published the new accounting standard, IFRS 16 leases
2. In 2014, FLA members provided £100 billion of new finance to UK businesses and households. £26 billion of finance was provided to businesses and the public sector. FLA members financed more than 30% of UK investment in machinery, equipment and purchased software in the UK last year.