TY - JOUR
T1 - International lease-accounting reform and economic consequences
T2 - The views of U.K. users and preparers
AU - Beattie, Vivien
AU - Goodacre, Alan
AU - Thomson, Sarah Jane
PY - 2006
Y1 - 2006
N2 - In response to perceived difficulties with extant lease-accounting standards in operation worldwide, the G4+1 issued a discussion paper which proposes that all leases should be recognized on the balance sheet [ASB (1999). Leases: Implementation of a new approach, discussion paper. London: Accounting Standards Board]. Leasing is now on the active agenda of the IASB. A major difficulty faced by standard setters lies in overcoming the preparer/user lobbying imbalance and obtaining ex ante evidence on the likely impact of regulatory reform. This paper contributes to the ongoing international debate by conducting a questionnaire survey of U.K. users and preparers to assess their views on proposals for lease-accounting reform and on the potential economic consequences of their adoption. The results, based on 132 responses, indicate that both groups accept that there are deficiencies in the current rules, but they do not agree on the way forward and believe that the proposals would lead to significant economic consequences for key parties. The impact on respondents' views of familiarity with the proposals, level of lease usage, and company size, is also examined. © 2006 University of Illinois. All rights reserved.
AB - In response to perceived difficulties with extant lease-accounting standards in operation worldwide, the G4+1 issued a discussion paper which proposes that all leases should be recognized on the balance sheet [ASB (1999). Leases: Implementation of a new approach, discussion paper. London: Accounting Standards Board]. Leasing is now on the active agenda of the IASB. A major difficulty faced by standard setters lies in overcoming the preparer/user lobbying imbalance and obtaining ex ante evidence on the likely impact of regulatory reform. This paper contributes to the ongoing international debate by conducting a questionnaire survey of U.K. users and preparers to assess their views on proposals for lease-accounting reform and on the potential economic consequences of their adoption. The results, based on 132 responses, indicate that both groups accept that there are deficiencies in the current rules, but they do not agree on the way forward and believe that the proposals would lead to significant economic consequences for key parties. The impact on respondents' views of familiarity with the proposals, level of lease usage, and company size, is also examined. © 2006 University of Illinois. All rights reserved.
KW - Economic consequences
KW - Lease accounting
KW - Lobbying
KW - Off-balance-sheet finance
KW - Survey
UR - http://www.scopus.com/inward/record.url?scp=33644700941&partnerID=8YFLogxK
U2 - 10.1016/j.intacc.2005.12.003
DO - 10.1016/j.intacc.2005.12.003
M3 - Literature review
SN - 0020-7063
VL - 41
SP - 75
EP - 103
JO - International Journal of Accounting
JF - International Journal of Accounting
IS - 1
ER -