Thousands of haulage companies could face an administrative headache as a result of plans to include all leased assets, from photocopiers to lorries, on balance sheets.
The International Accounting Standards Board (IASB) wants to increase the transparency of a business's financial position, which includes the way leases are accounted for.
The British Vehicle Rental and Leasing Association
says the IASB appears to be indicating that lessees should have to estimate the probability of having to extend a lease contract, or pay for extra mileage or refurbishment costs. It believes this is "unrealistic" and is calling for simple standards to be implemented.
A spokesman for the Forum of Private Business says the move could lead to added costs for small businesses at a time when they can least afford it. He adds: "Leased items on a balance sheet are perhaps not good for businesses' credit ratings. It appears as a debt."
Julian Rose, head of asset finance at the Finance and Leasing Association, says: "It's something that's been talked about for about 20 years. They [the IASB] are deadly serious about implementing this change.
"What we hope to do is to influence and to simplify proceedings and proposals before the draft lease accounting standard
later next year."
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