The Senior Accounting Group submitted to the Basel Committee a joint letter with GFMA regarding the importance of clarifying the interpretation of the capital effects of the new IFRS and US GAAP lease accounting standards, which create a new on-balance sheet "right of use" asset to reflect leased assets, such as premises and equipment. The letter points out the potentially substantial effects on some banks' capital of an interpretation of such "right of use assets" as "intangibles" for Basel capital purposes. While the change of accounting standards does not reflect any economic change, and while an interpretation that would increase capital charges for such assets is apparently not intended, full clarity is required to avoid future confusion or divergent interpretations. The letter also calls for dialogue with stakeholders to determine other aspects of the treatment of leased assets for capital purposes.