Accountancy Age, Accountancy Age, Monday 23 August 2010 at 09:35:00

Retailers and banks will place more liabilities on balance sheets


New proposals on leasing could lead to a 60bn increase in liabilities forretailers and banks,theIndependent newspaper reports.

The International Accounting Standards Board?s (IASB) leasing proposals willtighten current leasing rules, forcing listed companies to place operatingleases on to their balance sheets.

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

Veronica Poole, audit partner and head of the Deloitte Global IFRS leadershipteam, told The Independent the top 50 FTSE companies had operating leasecommitments of about 94bn.

FurtherReading:
</br>New lease standard could destabilise corporate balance sheets


Newleasing rules could hit bank lending

Banksand retailers hit by accounting changes