The European Federation of Leasing Company Associations recently made its view point clear about the alterations to lease accounting standards that are being proposed by an international body.
In a whitepaper, Leaseurope expressed concern about how the International Accounting Standards Board’s (IASB) changes would affect lessees and the firms who lease to them, even here in the UK.
Currently, the European leasing industry supports a significant proportion of new investment by firms based in Europe. Each year, this is around €240bn (£189b). Leaseurope is concerned that the proposed changes will make it harder for firms to use equipment and vehicle leasing as part of their investment plan.
Leasing, rather than purchasing, frees up cash for firms to invest in other areas of their business.
Mark Venus, the chair of Leaseurope’s accounting committee, said:
“…the IASB should not issue a new Leases standard until it is clear that the project objectives will be achieved.”
The IASB is still making changes, which is said to be a response to the concerns expressed by various interest groups. The organisation is expected to produce a final standard in 2015, which will likely take two years to be rolled out.
Whatever the final changes are, at DJB we are confident that we will continue to help our customers to benefit from asset leasing. We also provide asset based lending and financing, which you can find out more about on this website.
Leaseurope has 44 members that work across the leasing industry, which are based in 34 countries.