Work Truck Logo
MenuMENU
SearchSEARCH

Lease Accounting Faces Overhaul

Rule makers seek increased disclosure of liabilities; companies with short term, low value leases could suffer.

by Staff
July 18, 2006
2 min to read


A formal overhaul of rules on leases, slated to begin this week, could force companies to recognize billions of dollars in liabilities currently kept off their books, according to The Wall Street Journal. Prompted by a Securities and Exchange Commission call last year for new accounting standards after the collapse of Enron Corp., the move to create new rules is a joint effort by the Financial Accounting Standards Board (FASB) in the U.S. and the International Accounting Standards Board in London. With equipment leasing comprising a more than $200 billion-a-year industry in the U.S., businesses are expected to strongly oppose new rules, The Wall Street Journal reports. Current rules test whether a company effectively takes ownership of the property or equipment being leased. But the rules also let companies structure transactions so that they aren’t considered to be taking ownership, avoiding having to record an asset and corresponding liability on their books. Instead, the information is included only in financial statement footnotes. Companies leasing equipment with relatively low values for short time periods will be hit with burdensome, costly accounting rules, said Bill Bosco, head of consulting group Leasing 101 and a member of the Equipment Leasing Association’s accounting committee. He says it would make more sense for FASB to compel companies to book big-ticket, multiyear leased items while allowing them to simply increase disclosure on other leases in the notes to financial statements.

More Small Fleet

Cover of the "Top 50 Green Fleets" report presented by Automotive Fleet and Inspiration Fleet, featuring an aerial nighttime photo of a lit highway interchange with looping ramps.
SponsoredJuly 16, 2026

The Top 50 Green Fleets

The List Is in: The Top 50 Green Fleets

Read More →
 Drivers in a safety meeting at Wheelz Up
Small Fleetby Amy HercherJuly 14, 2026

Developing Budget-Friendly Driver Safety Programs

From driver training and safety meetings to one-on-one coaching and incentive programs, several small fleets share how they have developed a safety culture with their drivers using low- to no-cost resources.

Read More →
SponsoredMarch 9, 2026

Boosting Last-Mile Fleet Uptime, Safety, and Value with AI Vehicle Inspections

AI-powered inspections are transforming last-mile fleets by replacing manual checks with highly accurate automated scans that detect defects in seconds. By giving fleet operations visibility into the daily condition of their vehicles, you can identify trends over the vehicle’s lifecycle that enable improved procurement decisions, route management, driver training and accountability.

Read More →
Ad Loading...
SafetyFebruary 4, 2026

Five Ways Seat Belts Help Prevent Injuries

There are five ways seat belts protect occupants from injuries, according to the Tennessee Department of Safety and Homeland Security.

Read More →
SponsoredJanuary 14, 2026

It’s here: The 2026 Fleet Technology Trends Report

What does AI mean for fleets? Get the answer — and learn other top tech trends.

Read More →
Wreaths Across America graphic highlighting the role of small fleets in delivering wreaths to honor veterans, featuring wreath icons and the American flag.
Small Fleetby Lauren FletcherDecember 8, 2025

Small Fleets, Big Impact: How Independent Drivers Power Wreaths Across America

Check out how small fleets and independent drivers power Wreaths Across America each December and why their impact matters more than ever.

Read More →
Ad Loading...
A stressed person covers their face, illustrating that 65% of small fleet managers handle all operations alone, according to a Vehicle Management Systems (VMS) survey.
Small Fleetby StaffNovember 12, 2025

VMS Survey Finds 65% of Small Fleet Managers Run Operations Alone

A new VMS survey shows small fleet managers are stretched thin, with most handling operations solo and eager to adopt digital tools for relief.

Read More →
Safe Driving on Halloween over spooky fall road
Safetyby StaffOctober 20, 2025

Tips for Driving Safely on Halloween Night

This video features a reminder from the Connecticut Department of Transportation (DOT) and the Connecticut Police Chiefs Association, urging drivers to prioritize safety this Halloween.

Read More →
VMS Co-CEO David Prusinski highlights the company’s AI-powered virtual fleet manager designed to improve uptime and reduce operating costs for fleets.
Green Fleetby Lauren FletcherOctober 6, 2025

AI, Access, and Uptime: VMS’s Next Chapter with David Prusinski

VMS’s new Co-CEO, David Prusinski, shares how an AI-first approach will give small fleets and repair shops the tools to compete like big players.

Read More →
Ad Loading...
Photo of tire tracks and winter scenes.
Small FleetMay 24, 2025

Fleet Managers Share Winter Prep Tips: It's Never Too Early!

Three fleets share best practices to prep vehicles for winter and prevent downtime when the cold sets in.

Read More →