The road to adopting the Financial Accounting Standards Board’s new lease accounting standard is a long one. However, research from Robert Half and Protiviti* shows the majority of organizations haven’t even started the car.
Public companies must comply with the new standard beginning by next year. All other organizations have until just 2020.
The Robert Half and Protiviti survey of finance leaders found smaller companies are lagging behind their larger counterparts. However, companies of all sizes and in all industries face challenges, such as training employees on the new rules, diagnosing the needed changes and finding staff who have the necessary subject-matter expertise.
The volume of companies that have begun the lease accounting journey varies widely from market to market. Similarly, these organizations' pain points can differ; in some instances, the challenges include updating systems, managing the change that the new standard brings, and identifying and categorizing their leases.
Lease accounting challenges, by city
See the infographics for 22 cities to find out how organizations in those areas are faring with lease accounting, what challenges they face, and how the transition to the new standard compares to their revenue recognition adoption process.
*Protiviti is a global consulting firm and Robert Half subsidiary.