As transactions become more complex, accounting becomes more complex. The terms of lease contracts are varied and complex reflecting the specific needs of the lessees and lessors as well as the unique attributes of the leased assets. The value of equipment at inception, during the term and at lease expiry is a complicating factor. Users of financial statements who want a simple financial report that tells them everything they need to know about a company's obligations and rights are dissatisfied with current lease accounting and reporting. They will be just as disappointed with the financials under The New Approach .
Users have to look beyond the basic financial statements for full understanding.
The Barents Study describes how serious users of financial statements such as rating agencies do actually dig into disclosures and footnotes and use analysis to reach the level of understanding they need. This is the reality of a complex financial world, there are no simple solutions. If the authors of the Discussion Paper believe that the New Approach will eliminate the need for such analysis in the future it is because they do not understand this industry and its products and services. The analyses will be different under this approach but they will be just as necessary if users are to draw meaningful conclusions about the reported figures. Such complexities are unavoidable.