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.
