Three in every four fleet decision-makers do not believe proposed new accountancy rules will result in them abandoning contract hire.

The new international accounting standards, due to take effect from April 2011, could require leased vehicles to be accounted for on a company’s balance sheet (Fleet News, October 8).

Such a move would introduce added complexity for company accountants and thus significantly raise the cost of accounting for leased assets.

However, 77% of respondents to a Fleet News online poll dismissed it would result in them steering clear of contract hire.

The new rules are aimed at ‘big ticket’ assets like airplanes, but it now looks likely they will include smaller items such as cars and even photocopiers.

Therefore, all leases will be accounted for on a company’s balance sheet as assets and liabilities – the asset of having the use of the leased vehicle and the liability of having to pay for its lease.

See this week's Fleet News for more.