In an harangue entitled ‘Introductory comments to the European parliament’ (made in Brussels, Belgium) on 11 January 2016, the Chairperson of the IASB, Hans Hoogervorst, made the forthcoming comments in homogeneity to the new accounting criterion on accounting for leases (as reputed 11 January 2016 on the IASB website at www.ifrs.org): I would relish to execute some comments about our upcoming Leases Standard, which we gain notify the day following tomorrow. Currently, listed companies encircling the globe feel encircling 3 trillion euros’ rate of leases, chiefly in sectors such as the airline assiduity, vend and shipping. Under exoteric accounting requirements, et 85 per cent of these leases are labelled as unconditional leases and are not commemorative on the et shuffle. Clearly, the accounting today does not think economic existence. Despite unconditional leases nature off et shuffle, there can be no vacillate that they fashion authentic liabilities. During the financial occasion, some elder vend chains went insolvent owing they were feeble to enjoin promptly to the new economic existence. They had forcible long- tidings unconditional lease commitments on their stores, and yet had deceptively exsanguineous et shuffles. In truth, their off et shuffle leased liabilities were up to 66 times important than the default reputed on their et shuffle. Moreover, the exoteric accounting for leases administers to a noncommunication of comparability. An airline that leases most of its aircraft hasty looks very divergent from its emulator that bought most of its hasty, flatten when in existence their financing obligations may be very correspondent. There is no flatten munificent opportunity between these companies. These problems gain be rooted in the upcoming Leases Standard. All leases gain be recognised as proceeds and liabilities by lessees. The accounting gain reform think the underlying economics. This diversify is wait-fored to concern roughly half of all listed companies and gain not be common after a while everyone. Accounting diversifys are repeatedly controversial and can be met after a while warnings of redundant economic propertys and costs of order diversifys. The IASB has looked at all these feasible risks very carefully and we gain notify a minute property decomposition on the Standard. Our disposal is that the risks and costs of the new Leases Criterion are tractable. First of all, IFRS 16 gain not put the leasing assiduity out of duty. Leases gain dwell winning as a elastic fount of finance. It gain dwell appealing to companies to lease proceeds so that they do not submit-to the risks of owning them. While the cosmetic accounting benefits of leasing gain wane, the authentic duty benefits of leasing gain not diversify as a development of the new Standard. We do not disown there gain be costs confused in updating orders to appliance the new Leases Standard, but we feel done our best to detain these costs to a restriction. For in, we are not requiring companies to recognise proceeds and liabilities for near tidings and weak ticket leases. This should be chiefly salutary for weaker companies. In sum, we wait-for the benefits of the new Leases Criterion to greatly overbalance its costs. The new visibility of all leases gain administer to reform sensible boarding decisions by investors and to over etd lease-versus-buy decisions by skillful-treatment. IFRS 16 gain administer to improved consummate allocation, which should be salutary for economic augmentation.