The modifications of the financial Lease Accounting Standards, which are being prepared by the European IASB and the American FASB, remain a hot topic in the leasing and fleet world. During the Fleet Europe Forum 2010 on November 18th in Brussels, Mark Volmerink, Group Financial Controller for Control, Reporting & Tax at LeasePlan Corporation, presented a summary of affairs and focused above all on the consequences that these will have for international lessees and lessors.

Mark Volmerink first presented the most important reasons for the modification of the Lease Accounting Standards. "Currently there is a difference between financial and operational leasing. From an accounting point of view, financial leasing is presented on the balance sheet, while operational leasing is booked off the balance sheet. The new standard is expected to evolve to a single model, whereby operational leasing is taken up ‘on balance sheet’, namely also in the balance sheet of the lessee. The objective is to give investors information about expected cash flows for all leases in financial statements. In the current situation, investors carry out adaptations that are based on estimates. 

A consequence is that accounting will become more complex through the assessment of the lease term, contingent rentals and residual value guarantees from lessees. This will also have a large impact on ratios.

Mark Volmerink told his listeners that adaptations in the Lease Accounting Standards will come no matter what. The form is not yet entirely clear, but in general it is expected that the new standard will be a fact in 2013. Volmerink clearly called upon lessees to be prepared for this. "While 2013 seems far away, you should also understand that integration in your operating environment will demand time."