That’s the finding of a new Update Paper published by Leaseurope on the status of the International Accounting Standards Board’s (IASB) project to develop the new accounting standard.

The paper assesses the project against the IASB’s objectives from when the project started in July 2006. It concludes that none of the five main objectives of the project are likely to be achieved by the current proposals.

Mark Venus, chairman of Leaseurope’s Accounting Committee, said: ‘Particularly at a time when the European Central Bank is investing heavily in facilitating credit provision to improve the business environment for European firms, the IASB should not issue a new Leases standard until it is clear that the project objectives will be achieved.’