FLA comments on proposed rules for lease accounting

Commenting on new proposals from the International Accounting Standards Board (IASB) to change the treatment of lease accounting, Stephen Sklaroff, Director General of the Finance & Leasing Association (FLA), said: “It is disappointing that once again the IASB has published a set of proposals for important new accounting rules which do not command the full support of its own members.”

“While we are pleased that the Board’s original highly complex proposals have been simplified, we remain concerned that the revised draft rules will still be difficult for business users of leasing to implement. We will be urging the Board to make further changes to reflect the needs of the hundreds of thousands of businesses of all sizes which rely on leasing to fund their equipment investment.”

Note to editors:

1. In 2012 FLA members provided £76.4 billion of new finance to UK businesses and households.  £21.4 billion of finance was provided to businesses and the public sector, representing around 28% of all fixed capital investment (excluding real property and own-account software) in the UK last year.