Poll: Execs Unsure of Ability to Implement Lease Standards on Time

By:
Chris Gaetano
Published Date:
Aug 2, 2017
Deadline alarm clock

A recent poll undertaken by Deloitte has found that nearly half of corporate executives are unsure of whether or not they will be able to implement the new lease standards in time for the 2019 effective date, according to CPA Practice Adviser. The lease standards were developed as part of the convergence project between the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). While the two versions are slightly different, the main idea behind both of them is that all leases will be listed on the balance sheet, represented as both an asset representing the right to use the leased item, and a liability, represented as the totality of lease payments owed. While the FASB standards were approved the new standards a year and a half ago, the Deloitte poll said that 47.1 percent of C-suite and other corporate executives are concerned about their ability to implement them on time. This figure jumps when in particular sectors. 56.2 percent of those in the oil and gas industry, 55.9 percent in consumer products, 54.3 percent in wholesale and distribution, 53.6 percent in health care, and 52.6 percent in media have these concerns as well. 

By contrast, 11.4 percent said they were either extremely or very prepared to implement the new standards, up from an October 2016 poll showing 11 percent, which in turn was up from a March 2016 poll showing 7.9 percent. 

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