Companies Making Progress on Implementing Lease Standard, But Many Still Struggle

Chris Gaetano
Published Date:
Apr 2, 2019
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A recent poll from Deloitte found that companies have been making been steady progress in implementing the new Financial Accounting Standards Board lease standard, but there remains a sizable minority of companies still hesitant over their ability to comply. The survey of 950 C-suite level executives found that 60.7 percent in public organizations thought that they were prepared to comply with the new standard, which is now in effect, but 30.6 percent thought they were only somewhat prepared, and 6.9 percent said they weren't ready at all. Nonetheless, the results represent progress compared to previous years: in 2016, for instance, just 22.6 percent said they were prepared. 

The statistics were a little more grim for private companies, with just 16.9 percent saying they were ready, though they have an additional year to implement the standard. 

As for how these companies are implementing the new standard, public organizations seemed to favor lease accounting software, with 52.6 saying they were using it versus 13.4 percent of private organizations. These private companies tended to favor manual processes in implementing, with 43.8 percent, versus 30.8 percent for public companies. 

The Foundation for Accounting Education will hold a seminar on this topic—Leases: Mastering the New FASB Requirements—on June 11. For more information, and to register, click here.

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