The International Chamber of Shipping (ICS) has submitted its views on the International Accounting Standards Board's (IASB's) proposals on leases.

ICS has been speaking to its members for a number of weeks and its views represent the consensus of its collective, which it has directly submitted to ISAB.

Secretary general for the ICS Peter Hinchliffe said: "The majority of our members still have concerns about the latest IASB proposals, which, if ever implemented, could even result with some companies becoming in technical breach of existing covenants with financial institutions."

Mr Hinchcliffe also said the variety of contracts available in shipping, inclusive of time and voyage charters, is part of the long-established traditions of the industry.

The chamber also commented on the complex nature of IASB's proposals, suggesting that shipping businesses could face difficulties complying with them. ICS recommends IASB drops the current plans and, if needed, looks to make improvements on the current classification standards for leases.