Under existing accounting standards, operating leases are not recorded on the financial statements. Bringing these leases on financial statements could trigger debt covenants for organisations with a large number of leased vehicles. This is because bringing operating leases on statement of financial position could increase a business's liabilities over and above levels agreed with lenders. Unlike finance lease contracts, under which ownership of the asset is transferred to the lessee at the end of the term, at the end of an operating lease ownership remains with the lessor. Exactly how an operating lease should be recognised on a statement of financial position is tricky, given the organisation that takes out the lease does not actually own the asset. What is the issue with the leasing standard in this para compare to the new IFRS16- Any mis-conception in article eg transfer of ownership mentioned in the case study