Businesses will be affected by new accountancy rules for leasing if proposals in a discussion paper by the International Accountancy Standards Board (IASB) are adopted.

Under the IASB’s proposals all leased equipment - including cars, commercial vehicles, machinery, PCs and photocopiers - would need to be added to firms’ balance sheets by even the smallest businesses.

However, while all busnieses will be affected if these rules are adopted, it is the administrative burden on SMEs which needs to be taken into account.

The Forum of Private Business (FBP) and the Finance and Leasing Association (FLA) are calling for a sensible approach that takes account of the costs and benefits to small businesses of including all leased equipment on their balance sheets.

Stephen Sklaroff, director general of the FLA, said: “Surely, we should differentiate between large corporates with millions of pounds of leased equipment and small businesses that rent a fax machine and a photocopier?”

The IASB is consulting on potential changes and no timescale has been suggested as to when potential changes could be introduced.