What's that you say, Hans? No one wants more liabilities on their balance sheet?
"Obviously, this standard is not a very popular one," IASB chief Hans Hoogervorst said in a conference call. "Generally, companies like off-balance-sheet financing" and the standard will put an end to a major part of it, he said.
Well, that's a drag, isn't it? Never mind that it's financial reporting reality to include future obligations in the liabilities section of the balance sheet. But reality is terribly inconvenient thing because there is $1.5 trillion of operating leases sitting off-balance sheet, according to the U.S. Chamber of Commerce and real estate groups who HATE this proposal.
Luckily, they've got one man on the Hill who could afford some time out of his busy day to express his outrage and suggest the SEC get involved:
At least one politician swiftly condemned the plan.Representative Brad Sherman, a Democrat of California, who serves on the U.S. House of Representative Financial Services Committee, said the plan would "substantially harm small businesses and throw a real monkey wrench in the real estate economy.Sherman, who spoke at a Securities and Exchange Commission hearing on a wide range of issues, urged the SEC to intervene in the accounting proposal.