Changes to Accounting Standards Presents Opportunity for Fleets
With new account regulations from both the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) set to go into effect later this year, companies that are currently leasing or expect to lease their fleet vehicles should begin preparing now to ensure a smooth transition. In a recent article with Builder’s Merchant News, ARI’s Vice President of Finance Paul Azores offered his insight on the new accounting standards along with some key considerations and areas of focus for fleet managers.
According to Azores, the new standards will need to be considered when developing a financing strategy but he says leasing still offers significant benefits for most companies.
“Companies decide to lease for a number of different reasons, all of which remain viable under the new accounting standards. Given the right circumstances, leasing will allow a company to improve cash flow, with the potential to reap additional benefits. It can allow companies to meet their fleet needs with newer vehicles, which results in additional cost savings relating to maintenance and fuel efficiency,” said Azores.
Read the entire article from Paul Azores and watch a recent webinar featuring ARI’s Director of Lease Portfolio Management Jesse Mann to learn more about how the new FASB and IASB accounting standards may impact your financing strategy.