ARI sees opportunity from new IFRS accounting standard

When the new IFRS 16 lease accounting standard goes into effect in 2019, companies will be required to record their leases in a more transparent way, something that multinational vehicle fleet management company ARI sees as an opportunity.

“As companies prepare for this shift, I expect many of them taking the opportunity to reassess their overall acquisition strategy and consider implementing a more cost-effective and more transparent open-end lease solution,” ARI President Bob White told Global Fleet in an interview.

“Open-end leasing offers complete visibility into the total cost of ownership and more opportunity to control operating costs. As IFRS 16 takes effect and open-end lease options become more widely available, we believe that these flexible leases will quickly become the choice for many organizations,” the executive said.