Ralph Petta 2016-03-17 22:28:17
THE RELEASE OF THE NEW LEASE ACCOUNTING STANDARD by the Financial Accounting Standards Board on Feb. 25 was a milestone for our industry and our association. ELFA has put forth a major effort and invested significant resources into our participation in the lease accounting project over the past decade.
We’ve had a task group of the Board of Directors, a team of consultants and subject matter experts and our Financial Accounting Committee participating in various working groups and fact-finding activities, all striving to ensure proper due process, a thorough vetting of industry input and, ultimately, a workable and sound standard to replace FAS 13.
Through all of these efforts, we were able to positively influence the direction of the new standard. ELFA took the high road, engaging constructively with the FASB as they developed the rules. We said, “If you are going to change the rules, at least let us help you make the right decisions.” And that is what happened. The FASB made some key decisions because we spoke up and were part of the conversation. As a result, the final standard is much improved over the 2010 and 2013 Exposure Drafts and leaves intact the economics of the lease transaction.
The entire process is a model case study on the value of a trade association—in this case, your trade association! Together we were able to effectively influence the standardssetting process by harnessing the energy of our members, industry experts, staff and other resources. All of you who helped can be proud of the results. Without your efforts, we could be facing a far different outcome that could have imposed far more onerous compliance and financial burdens on lessees and lessors.
We have developed a number of resources to help you educate your staff and your customers about the new rules, highlighting that the value of equipment leasing and finance will not change with issuance of the new standard. For more information, please see page 6.
Capitol Connections
While lease accounting has been our No. 1 advocacy issue over the past decade, we are deeply involved in other public policy matters impacting our industry. Two of the biggest areas we focus on are tax policy, including comprehensive tax reform, and financial services regulatory policy, especially the changes made by the Dodd-Frank Act.
One of the effective ways we respond to these and other public policy issues is through our Capitol Connections program. This year ELFA members will come to Washington, D. C., May 18–19 to educate members of Congress about our industry. It is truly “democracy in action.”
Members who make the time and effort to participate in Capitol Connections come away with a newfound recognition that when everyone comes together and speaks with one industry voice, that voice gets heard, and it makes a difference in what gets done in Washington. We hope to see you in Washington in May!
Thank you as always for your support and participation.
Ralph Petta is the President and CEO of the Equipment Leasing and Finance Association and the publishing director of Equipment Leasing & Finance. To submit letters to the editor, email EL&F@elfaonline.org.
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