International lease accounting reform and economic consequences: the views of UK users and preparers

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

A Longitudinal Study of Equipment Leasing in the U.S. Lodging Industry

This paper examines the current equipment leasing practices in the U.S. lodging industry and compares tjhese practices to leasing practices in the U.S. lodging industry in 2000. It compares the differences of what features of leases make them attractive for today\u27s hotel companies compared to those a decade ago. A previous study of leasing in the lodging industry was conducted by Schmidgall and Upneja ten years ago. Their research revealed the major reasons for leasing included (1) protection from obsolescene, (2) securing tax advantages, and (3) ensuring uniform cash outflows. Ten years have passed and a similar questionnaires was sent to 500 members of HFTP associated with the lodging industry. This time researchers found that the major reasons for leasing are (1) keep upgrading equipment, (2) protection against obsolescene, and (3) lower down payments