National Parking Association
1112 16th Street NW, Suite 840
Washington, DC 20036
Washington, D.C. (December 15, 2010)—The National Parking Association (NPA) urges the parking industry to oppose new lease accounting standards proposed by the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB).
In August 2010, FASB and IASB issued a joint exposure draft on the proposed standards that, if implemented, will change the way leases are accounted for on balance sheets by capitalizing all leases for both lessees and lessors. Since the release of the draft, NPA has voiced its opposition to the proposed rulemaking and provided guidance to its members for submitting a comment letter to the IFRS.
NPA joined with 34 other organizations to sign a joint trade association comment letter to the IFRS and also submitted its own nationwide parking industry public comment letter.
“Businesses would be negatively impacted by the reporting burden and potential impact on access to capital and availability of credit,” says NPA President Christine Banning. “This is particularly true of parking operations, because many base their business model on leasing facility spaces. The proposed rulemaking creates a competitive disadvantage to the balance sheet of any parking business that has a large number of leased locations.”
The parking industry is particularly disadvantaged by the rulemaking, says Banning, because the majority of companies are small to medium-sized, privately held firms.
NPA says the proposed accounting standards update will inflate balance sheets and add confusion and complexity to financial reporting, creating significant cost and administrative burdens on its members.
About the National Parking Association: The National Parking Association (NPA) is an international network of organizations comprised of parking industry professionals. NPA's mission is to serve as a resource to the parking industry and our members by offering quality education, networking opportunities, advocacy, products and services. To learn more, go to www.npapark.org.