From Accounting Today: Only 26.3 percent of public company execs say their implementation of the lease accounting standard is complete, according to a new survey by Deloitte, even though they were supposed to begin using it this year.
Most have already disclosed using the new standard in at least one reporting period since the effective date of Dec. 15, 2018 for public companies, but that doesn’t mean they’ve finished implementing the new leases standard.
“Most of our U.S. public company clients have completed initial compliance activities, but very few have fully completed their broader lease implementation efforts,” said Deloitte Risk & Financial Advisory managing director Sean Torr in a statement. “I suspect we see a low rate of U.S. public company executives calling implementation ‘complete,’ because they’ve realized that ongoing work is necessary to build sustainable, long-term lease accounting programs.”
The Financial Accounting Standards Board recently proposed to delay the effective date of the leases standard for private companies from Dec. 15, 2019 to give them an extra year to get ready, until Dec. 15, 2020 (see FASB issues proposal to delay new standards). But many executives polled by Deloitte are finding the process challenging, as more than half of executives at privately held organizations with 100 or more real estate and/or equipment leases in their portfolios describe lease accounting implementation as “difficult.” Read more here.