Lease Accounting Standard Adoption at Private Companies by Industry

By June 12, 2019 at 5:50pm

LEASE ACCOUNTING STANDARD ADOPTION AT PRIVATE COMPANIES, BY INDUSTRY

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

Yes, started Yes, started but not completed No
NATIONAL 47% 36% 13%
BUSINESS SERVICES 50% 33% 17%
CONSTRUCTION 46% 27% 27%
FINANCE 47% 45% 8%
MANUFACTURING 53% 29% 18%
PROFESSIONAL SERVICES 43% 38% 19%
RETAIL/WHOLESALE 40% 30% 30%
TRANSPORTATION/PUBLIC UTILITIES 25% 63% 13%
OTHER 55% 28% 17%

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%
BUSINESS SERVICES 33% 0% 67%
CONSTRUCTION 0% 50% 50%
FINANCE 10% 70% 20%
MANUFACTURING 0% 50% 50%
PROFESSIONAL SERVICES 25% 50% 25%
RETAIL/WHOLESALE 0% 42% 58%
TRANSPORTATION/PUBLIC UTILITIES 0% 67% 33%
OTHER 46% 23% 31%

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
BUSINESS SERVICES Managing change; training staff, updating technology ((tie)
CONSTRUCTION Training staff
FINANCE Finding professionals with the requisite expertise; updating technology (tie)
MANUFACTURING Managing change; training staff; updating technology (tie)
PROFESSIONAL SERVICES Updating technology
RETAIL/WHOLESALE Identifying, inventorying and categorizing companies’ leases
TRANSPORTATION/PUBLIC UTILITIES Finding professionals with the requisite expertise; updating technology (tie)
OTHER Training staff

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
Spreadsheets 51%
Lease accounting software 51%
Cutting-edge, advanced technologies 50%
Paper-based records 43%
BUSINESS SERVICES
Spreadsheets 67%
Lease accounting software 33%
Cutting-edge, advanced technologies 33%
Paper-based records 33%
CONSTRUCTION
Spreadsheets 80%
Lease accounting software 80%
Cutting-edge, advanced technologies 80%
Paper-based records 60%
FINANCE
Spreadsheets 56%
Lease accounting software 50%
Cutting-edge, advanced technologies 56%
Paper-based records 39%
MANUFACTURING
Spreadsheets 44%
Lease accounting software 33%
Cutting-edge, advanced technologies 67%
Paper-based records 22%
PROFESSIONAL SERVICES
Spreadsheets 67%
Lease accounting software 44%
Cutting-edge, advanced technologies 33%
Paper-based records 44%
RETAIL/WHOLESALE
Spreadsheets 63%
Lease accounting software 63%
Cutting-edge, advanced technologies 50%
Paper-based records 63%
TRANSPORTATION/PUBLIC UTILITIES
Spreadsheets 0%
Lease accounting software 0%
Cutting-edge, advanced technologies 50%
Paper-based records 100%
OTHER
Spreadsheets 31%
Lease accounting software 63%
Cutting-edge, advanced technologies 38%
Paper-based records 38%

Which tool did you rely on most?

NATIONAL
Cutting-edge, advanced technologies 37%
Spreadsheets 23%
Lease accounting software 20%
Paper-based records 20%
BUSINESS SERVICES
Cutting-edge, advanced technologies 33%
Spreadsheets 33%
Lease accounting software 33%
Paper-based records 0%
CONSTRUCTION
Cutting-edge, advanced technologies 60%
Spreadsheets 20%
Lease accounting software 0%
Paper-based records 20%
FINANCE
Cutting-edge, advanced technologies 44%
Spreadsheets 28%
Lease accounting software 11%
Paper-based records 17%
MANUFACTURING
Cutting-edge, advanced technologies 67%
Spreadsheets 22%
Lease accounting software 11%
Paper-based records 0%
PROFESSIONAL SERVICES
Cutting-edge, advanced technologies 11%
Spreadsheets 22%
Lease accounting software 33%
Paper-based records 33%
RETAIL/WHOLESALE
Cutting-edge, advanced technologies 38%
Spreadsheets 25%
Lease accounting software 13%
Paper-based records 25%
TRANSPORTATION/PUBLIC UTILITIES
Cutting-edge, advanced technologies 0%
Spreadsheets 0%
Lease accounting software 0%
Paper-based records 100%
OTHER
Cutting-edge, advanced technologies 25%
Spreadsheets 19%
Lease accounting software 38%
Paper-based records 19%

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%
BUSINESS SERVICES
Cutting-edge, advanced technologies 0%
Lease accounting software 0%
Spreadsheets 33%
Paper-based records 33%
Not planning to change 33%
CONSTRUCTION
Cutting-edge, advanced technologies 20%
Lease accounting software 40%
Spreadsheets 0%
Paper-based records 40%
Not planning to change 0%
FINANCE
Cutting-edge, advanced technologies 33%
Lease accounting software 17%
Spreadsheets 28%
Paper-based records 22%
Not planning to change 0%
MANUFACTURING
Cutting-edge, advanced technologies 44%
Lease accounting software 33%
Spreadsheets 22%
Paper-based records 0%
Not planning to change 0%
PROFESSIONAL SERVICES
Cutting-edge, advanced technologies 22%
Lease accounting software 11%
Spreadsheets 33%
Paper-based records 33%
Not planning to change 0%
RETAIL/WHOLESALE
Cutting-edge, advanced technologies 38%
Lease accounting software 28%
Spreadsheets 13%
Paper-based records 0%
Not planning to change 13%
TRANSPORTATION/PUBLIC UTILITIES
Cutting-edge, advanced technologies 50%
Lease accounting software 50%
Spreadsheets 0%
Paper-based records 0%
Not planning to change 0%
OTHER
Cutting-edge, advanced technologies 38%
Lease accounting software 25%
Spreadsheets 19%
Paper-based records 13%
Not planning to change 6%

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%
BUSINESS SERVICES
Combination of internal and external resources 40%
Internal resources only 60%
External resources only 0%
CONSTRUCTION
Combination of internal and external resources 25%
Internal resources only 50%
External resources only 25%
FINANCE
Combination of internal and external resources 31%
Internal resources only 49%
External resources only 20%
MANUFACTURING
Combination of internal and external resources 57%
Internal resources only 42%
External resources only 0%
PROFESSIONAL SERVICES
Combination of internal and external resources 35%
Internal resources only 18%
External resources only 47%
RETAIL/WHOLESALE
Combination of internal and external resources 57%
Internal resources only 36%
External resources only 7%
TRANSPORTATION/PUBLIC UTILITIES
Combination of internal and external resources 14%
Internal resources only 57%
External resources only 29%
OTHER
Combination of internal and external resources 42%
Internal resources only 38%
External resources only 21%

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.

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