Lease Accounting Standard Adoption at Private Companies by Company Size

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By June 12, 2019 at 5:19pm

LEASE ACCOUNTING STANDARD ADOPTION AT PRIVATE COMPANIES, BY COMPANY SIZE

Has your company begun the transition to the new lease accounting standard?

Yes, completed Yes, started but not completed No
NATIONAL 47% 36% 17%
20-49 employees 38% 33% 29%
50-99 employees 40% 32% 28%
100-249 employees 54% 29% 18%
250-499 employees 38% 54% 8%
500-999 employees 64% 23% 14%
1,000+ employees 48% 44% 7%

CFOs who reported their company hasn’t completed the transition also were asked the question below:

How concerned are you about meeting the deadline?

Very concerned Somewhat concerned Not at all concerned
NATIONAL 15% 49% 36%
20-49 employees 0% 53% 47%
50-99 employees 27% 33% 40%
100-249 employees 23% 31% 46%
250-499 employees 7% 80% 13%
500-999 employees 13% 38% 50%
1,000+ employees 21% 50% 29%

What is the most challenging aspect of the transition to the new standard?

(Answer options included: diagnosing the needed changes; finding professionals with the requisite expertise; identifying, inventorying and categorizing company’s leases; managing change; training staff; updating technology)

NATIONAL Updating technology
20-49 employees Training staff
50-99 employees Updating technology
100-249 employees Managing change, updating technology (tie)
250-499 employees Finding professional with the requisite expertise, updating technology (tie)
500-999 employees Finding professional with the requisite expertise; identifying, inventorying and categorizing company’s leases; updating technology (tie)
1,000+ employees Finding professional with the requisite expertise; identifying, inventorying and categorizing company’s leases; updating technology (tie)

CFOs who reported their company has completed the transition also were asked the questions below:

Which of the tools did you use for first-year compliance with the new lease accounting standard?

NATIONAL
Lease accounting 51%
Spreadsheets 51%
Cutting-edge, advanced technologies 50%
Paper-based records 43%
20-49 employees
Lease accounting 56%
Spreadsheets 67%
Cutting-edge, advanced technologies 56%
Paper-based records 44%
50-99 employees
Lease accounting 60%
Spreadsheets 70%
Cutting-edge, advanced technologies 40%
Paper-based records 60%
100-249 employees
Lease accounting 53%
Spreadsheets 47%
Cutting-edge, advanced technologies 47%
Paper-based records 27%
250-499 employees
Lease accounting 56%
Spreadsheets 44%
Cutting-edge, advanced technologies 33%
Paper-based records 67%
500-999 employees
Lease accounting 57%
Spreadsheets 36%
Cutting-edge, advanced technologies 64%
Paper-based records 43%
1,000+ employees
Lease accounting 31%
Spreadsheets 54%
Cutting-edge, advanced technologies 54%
Paper-based records 31%

Which tool did you rely on most?

NATIONAL
Cutting-edge, advanced technologies 37%
Spreadsheets 23%
Lease accounting software 20%
Paper-based records 20%
20-49 employees
Cutting-edge, advanced technologies 33%
Spreadsheets 22%
Lease accounting software 22%
Paper-based records 22%
50-99 employees
Cutting-edge, advanced technologies 40%
Spreadsheets 20%
Lease accounting software 20%
Paper-based records 20%
100-249 employees
Cutting-edge, advanced technologies 33%
Spreadsheets 40%
Lease accounting software 7%
Paper-based records 20%
250-499 employees
Cutting-edge, advanced technologies 22%
Spreadsheets 22%
Lease accounting software 33%
Paper-based records 22%
500-999 employees
Cutting-edge, advanced technologies 43%
Spreadsheets 7%
Lease accounting software 21%
Paper-based records 29%
1,000+ employees
Cutting-edge, advanced technologies 46%
Spreadsheets 23%
Lease accounting software 23%
Paper-based records 8%

If you plan to change your approach to compliance in future years, which tool do you anticipate relying on most?

NATIONAL
Cutting-edge, advanced technologies 33%
Lease accounting software 24%
Spreadsheets 21%
Paper-based records 17%
Not planning to change 4%
20-49 employees
Cutting-edge, advanced technologies 33%
Lease accounting software 33%
Spreadsheets 22%
Paper-based records 11%
Not planning to change 0%
50-99 employees
Cutting-edge, advanced technologies 10%
Lease accounting software 40%
Spreadsheets 0%
Paper-based records 50%
Not planning to change 0%
100-249 employees
Cutting-edge, advanced technologies 13%
Lease accounting software 20%
Spreadsheets 40%
Paper-based records 13%
Not planning to change 13%
250-499 employees
Cutting-edge, advanced technologies 44%
Lease accounting software 11%
Spreadsheets 22%
Paper-based records 22%
Not planning to change 0%
500-999 employees
Cutting-edge, advanced technologies 50%
Lease accounting software 21%
Spreadsheets 21%
Paper-based records 7%
Not planning to change 0%
1,000+ employees
Cutting-edge, advanced technologies 46%
Lease accounting software 23%
Spreadsheets 15%
Paper-based records 8%
Not planning to change 8%

CFOS who reported their company has started or completed the transition also were asked the question below:

How do you anticipate staffing future lease accounting compliance initiatives?

NATIONAL
Combination of internal and external resources 39%
Internal resources only 41%
External resources only 20%
20-49 employees
Combination of internal and external resources 29%
Internal resources only 53%
External resources only 18%
50-99 employees
Combination of internal and external resources 33%
Internal resources only 56%
External resources only 11%
100-249 employees
Combination of internal and external resources 48%
Internal resources only 35%
External resources only 17%
250-499 employees
Combination of internal and external resources 36%
Internal resources only 27%
External resources only 36%
500-999 employees
Combination of internal and external resources 37%
Internal resources only 47%
External resources only 16%
1,000+ employees
Combination of internal and external resources 44%
Internal resources only 36%
External resources only 20%

Source: Robert Half and Protiviti survey of more than 178 CFOs from privately held companies in Canada; totals may not equal 100 per cent due to rounding.

*Multiple responses were allowed.

© 2019 Robert Half International Inc.