One of the beneficial effects of the financial crisis with respect to the field of financial reporting has been the rise of awareness among the international community of experts and politicians relevant to the financial markets regarding the need to reform accounting regulations (Mathiason 2009). Some standards had been challenged for a long time and the conceptual basis behind other measures has been questioned but could not be addressed on account of lobbying by other groups. One such feature was fair value measurement which was vociferously backed by many companies from different industries until it resulted in adverse consequences.
Now that a financial crisis has struck, the time may be ripe for standard setting bodies to address other measures as well and make the lobbyists cave in on other financial reporting rules. One such area mentioned in the article relates to the treatment of leasing (Williams 2008). This has been manipulated to keep billions of dollars in aircraft, fixed assets and rolling stock off the balance sheet whereas concept dictates that it shouldn’t. A change in standard may be better to bring about now than at any other time which is an opportunity presented to standard setting bodies like IASB which should not be allowed to pass.
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