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07 November 2012

FT: Lease accounting change faces objections


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The IASB and the FASB face an "uphill battle" in their attempt to force listed companies around the world to show leasing obligations on their balance sheets, according to one of the main proponents of the change.


“We will need all of the help we can get, to ensure that we do not get lobbied off course”, said Hans Hoogervorst, chairman of the IASB.

In a speech in London, Mr Hoogervorst said members of the US Congress had been “heavily lobbied” by the leasing industry and were writing letters challenging the plan to the FASB.

“As the financial crisis was caused by excessive leverage, our efforts to shed light on hidden leverage should be warmly welcomed around the world”, he said, in an attempt to shore up support from national accounting standard-setters, regulators and investors.

Press release



© Financial Times


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