Companies that are U.S. subsidiaries of multinational companies headquartered in Europe are already in the process of migrating to the international accounting standards. “In order to adopt the standards by Jan. 1, 2005, they need to also report comparative information from 2004. In our case, LeasePlan is now reporting Dutch, as well as international accounting standards, for 2004,” said Schaffer. Schaffer believes the U.S. will ultimately adopt international accounting standards, in some fashion. “It is not that the international accounting standards are coming; they are here. I believe there will be a convergence in the U.S., perhaps in 2006, with respect to lease accounting,” said Schaffer. “The FASB is already working on examining the various accounting standards that could be affected. There will be a due process, and we are at the beginning of that cycle.” According to some Australian business publications, the Australian Accounting Standards Board plans to “Australianize” some of the IASB international standards. A key point of contention is the treatment of identifiable intangibles, such as brands, patents, and trademarks, which would have a major impact on Australian (and U.S.) companies. Current IASB standards do not allow identifiable intangible assets to be posted to a balance sheet. The point in bringing this up is that just as the Australians seek to “Australianize” some IASB standards, so too should FASB consider “Americanizing” other standards in order to preserve the funding options currently available to fleets. The best place to start is with IASB Standard 17. Let me know what you think. email@example.com
Most in procurement take the position that fleet’s primary responsibility is to buy assets and services, which annually can range from millions to tens of millions of dollars in expenditures. This amount of corporate spend requires it be managed by someone with superb negotiation skills and proven procurement acumen. But why isn’t this true for all spend categories?