On average it is generally much more expensive to lease an asset than to buy it outright. And, as we saw in Section 5.8.3, there are regulations that erase some other traditional advantages to leasing (o-balance-sheet financing). Why, then, has leasing continued to grow in popularity?

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5.8.3 Proposed FASB lease classification changes Current FASB standards were effective January 1, 1977, and have been amended numerous times. An important and dramatic set of revisions to the standards is expected to take place about the time of the printing of this textbook. What is proposed by FASB and the International Accounting Standards Board (IASB) is to recognize all leased equipment as an asset appearing on the bal- ance sheet, essentially characterizing all leases as capital leases. Only in the case where a lease does not exceed 12 months in duration would the lease be considered a "rental" (and thus would not be disclosed except as a footnote