Open End Finance Lease : The alternative funding method arising from IFRS 16
Starting: 22 nov 17 - 14:00
Ending: 22 nov 17 - 14:45
When it comes to vehicle fleet management, multinational fleets in Europe traditionally opt for outsourcing. Similarly, the preferred funding scheme for vehicle fleets throughout most of Europe is full outsourcing in a closed-end lease environment. But is this model here to stay? Questions can be raised regarding its transparency and, ultimately, cost efficiency.
Operational (or closed-end) leasing has a major advantage: from an accountancy perspective, it is off-balance for the lessee. But that will change from 2019 onwards, with the introduction of IFRS16. From then on, all lease activities need to be registered on the balance sheet of the lessee. This may increase the need to look for alternative funding methods - including open-end finance lease.
In this webinar, supported by ARI Fleet, we discuss the conditions under which open-end finance lease can be the right alternative for funding your fleet.
The webinar ends with a lively Q&A.