A proposal that would require businesses to record all lease and hire equipment on balance sheets, if adopted, could hit small and medium sized businesses the hardest, warns the Forum of Private Business and the Finance & Leasing Association. Both associations are calling for 'a more sensible approach' that considers the cost and benefits to SMEs under the proposals set out in an International Accountancy Standards Board discussion paper. The FLA and FBP argue that only large businesses should face the burden of extra 'red tape'. Stephen Sklaroff, director deneral 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'. Phil Orford, chief executive of the FBP, highlights the support that small businesses need during the current economic climate and that 'unjustifiably' adding to the 'bureaucratic burden' would hinder efficiency. He added: 'Leasing is often an effective method of controlling costs. Setting a requirement for businesses of all sizes to add leased equipment to their balance sheets would be to ignore issues of scale at a time when small business owners are most in need of a proportional approach.'