Property body welcomes accounting backstep

The International accounting rule maker said it would reconsider forcing
landlords to keep their property income off their balance sheets, under proposed
new rules.

The European Public Real Estate Association (EPREA) reported a win after the
International Accounting Standards Board (IASB) suggested it would not force
landlords to exclude rental income from their statements.

Gareth Lewis, director of finance at EPRA, said he was encouraged by
yesterday’s decision which he said showed “that the IASB have listened to the
views expressed by the industry and recognized that the European real estate
sector already has an accounting standard (IAS 40) that is well supported across
the world.”

“This validates the huge amount of time and effort taken by EPRA and its
partners in the REESA alliance to present a global view on behalf of the
industry that was also the view of the investors,” he said.

“Our message was difficult for the regulators to ignore and will hopefully
result in a more transparent and useful accounting framework for investment
property than would otherwise have been the case.”

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