FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


Reuters: Accounting Chief Says Leases Reform in Danger

November 08, 2012, 07:04 AM
Filed Under: Regulatory News

Reuters reported that corporate lobbying may derail attempts by regulators to make companies account more clearly for leased equipment, the head of a global accounting rules body said on Tuesday.

According to the report, currently the costs of such leases, estimated at over $1 trillion globally, are tucked away in disclosures, but companies fear investors will take fright at swollen balance sheets which could raise borrowing costs.

The IASB and FASB will consult early next year on the rule which is due to come into force around 2016, but the industry is mounting a fierce rearguard campaign to scrap the change.

Another retreat would cast further doubt over attempts to create a global set of accounting standards as requested for the fourth time in three years on Monday by the world's leading economies (G20), according to the report.

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.