Lease proposals could add £60bn on to books

New proposals on leasing could lead to a £60bn increase in liabilities for
retailers and banks,
the
Independent newspaper reports.

The International Accounting Standards Board’s (IASB) leasing proposals will
tighten current leasing rules, forcing listed companies to place operating
leases on to their balance sheets.

Last week Accountancy Age revealed that banks would be particularly affected
by the changes in their role as both major lessees and lessors. Retailers also
stand to be significantly affected, owing to their role as major property
lessees.

Veronica Poole, audit partner and head of the Deloitte Global IFRS leadership
team, told The Independent the top 50 FTSE companies had operating lease
commitments of about £94bn.

Further
Reading:

New lease standard could destabilise corporate balance sheets

New
leasing rules could hit bank lending

Banks
and retailers hit by accounting changes