Thousands of UK small and medium businesses will be impacted by new accountancy rules for equipment leasing if proposals in an international discussion paper are adopted.
Lease Finance and hire purchase is currently used by around 750,000 UK small businesses, including at least 400,000 companies required by law to prepare financial accounts. Under the Standards Board’s proposals all leased equipment – including cars and vans, commercial vehicles, plant & machinery, Computers and photocopiers – would need to be added to firms’ balance sheets by even the smallest Companies.
The impact on small businesses could be huge if plans in the International Accountancy Standards Board’s paper get the green light, according to a joint response by the Forum of Private Business (FPB) and the Finance & Leasing Association (FLA).
For further information about business equipment leasing or to discuss what lease finance needs please contact Phillip Evans