General Motors Holden's leasing company Interleasing reported a $2.4 million profit after tax for calendar year 2007, compared to a $4.2 million loss for the corresponding period, on a 27 per cent revenue rise to $102.4 million.The main revenue driver lease rental revenue increased 13 per cent to $91 million, with a $5.7 million property, plant and equipment net profit booked compared to a $3.8 million loss a year earlier, which Michael Mitrovits, managing director Interleasing and chairman of Australian Fleet Lessor's Association, explains:"When the international accounting standards came in recently, they went and changed revenue recognition, so revenue fell. That's because the disposal of ex-lease vehicles can not be accounted for as revenue, the proceeds - you can only account for the profit or loss on disposal."The number of people taking out leases has grown, therefore the revenue reflects that growth."With regard to the $9.5 million positive turnaround in property, plant and equipment, Mitrovits explains it comes down to international accounting standards."In prior years where we were required to take an impairment provision, because we were losing money on vehicles and it looked like that position was not going to improve, we had to take up a provision in respect for cars sold in 2007. In essence, in 2007 you see an add back to make that look like a profit, and one of the vagaries of the accounting standards is that I am required to release the provision I created against those vehicles."And so, underlying that in a cash sense, it was close to break even."Mitrovits adds the year-on-year growth is modest at eight per cent, but the underlying value of the vehicles has increased."The cost of those vehicles has risen, and the revenue is also a product of what the car is worth at the end of lease - so the lease income will generally go up higher than the growth in the number of cars because if the residual is falling over time, which it has been as reported in our P&L, the amount the customer pays over the lease term will increase because the value of the car at the end of the lease is lower."Mitrovits said basically people have bought more expensive cars in 2007."That's predominately from the novated vehicle perspective. The average value of a novated vehicle is some ten to 15 per cent higher than a traditional company provided car."Provision for impairment of vehicles subject to operating lease increased four fold to $5.7 million."That's related to the operating leased vehicles in the portfolio. We are required to take an impairment charge for any contracts where the residual value in the operating lease is anticipated to be lower than the contract value."It does bounce, and there has been historically a six- or seven-year cycle where used vehicles go though ups and downs."There is a correlation with the release of new models, so when a new Ford or Holden comes out they tend to have a very good starting point in the used vehicle