Lease Accounting Standard Adoption at Private Companies, By Company Size

By June 12, 2019 at 12:33pm

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 56% 26% 18%
20-49 employees 38% 21% 41%
50-99 employees 51% 27% 23%
100-249 employees 53% 28% 19%
250-499 employees 62% 23% 14%
500-999 employees 63% 29% 9%
1,000+ employees 61% 28% 11%

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 18% 44% 39%
20-49 employees 0% 43% 57%
50-99 employees 17% 40% 43%
100-249 employees 14% 43% 43%
250-499 employees 18% 32% 50%
500-999 employees 11% 57% 31%
1,000+ employees 42% 47% 12%

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 Training staff
20-49 employees Training staff
50-99 employees Managing change
100-249 employees Training staff
250-499 employees Managing change, updating technology (tie)
500-999 employees Training staff
1,000+ employees Finding professional with the requisite experience

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
Cutting-edge, advanced technologies 59%
Spreadsheets 52%
Lease accounting software 49%
Paper-based records 39%
20-49 employees
Cutting-edge, advanced technologies 43%
Spreadsheets 24%
Lease accounting software 52%
Paper-based records 52%
50-99 employees
Cutting-edge, advanced technologies 47%
Spreadsheets 39%
Lease accounting software 39%
Paper-based records 31%
100-249 employees
Cutting-edge, advanced technologies 46%
Spreadsheets 41%
Lease accounting software 52%
Paper-based records 38%
250-499 employees
Cutting-edge, advanced technologies 54%
Spreadsheets 64%
Lease accounting software 45%
Paper-based records 30%
500-999 employees
Cutting-edge, advanced technologies 70%
Spreadsheets 61%
Lease accounting software 53%
Paper-based records 44%
1,000+ employees
Cutting-edge, advanced technologies 74%
Spreadsheets 57%
Lease accounting software 50%
Paper-based records 43%

Which tool did you rely on most?

NATIONAL
Cutting-edge, advanced technologies 40%
Spreadsheets 24%
Lease accounting software 22%
Paper-based records 14%
20-49 employees
Cutting-edge, advanced technologies 33%
Spreadsheets 10%
Lease accounting software 33%
Paper-based records 24%
50-99 employees
Cutting-edge, advanced technologies 36%
Spreadsheets 28%
Lease accounting software 28%
Paper-based records 8%
100-249 employees
Cutting-edge, advanced technologies 32%
Spreadsheets 23%
Lease accounting software 27%
Paper-based records 18%
250-499 employees
Cutting-edge, advanced technologies 41%
Spreadsheets 29%
Lease accounting software 18%
Paper-based records 13%
500-999 employees
Cutting-edge, advanced technologies 44%
Spreadsheets 25%
Lease accounting software 20%
Paper-based records 10%
1,000+ employees
Cutting-edge, advanced technologies 46%
Spreadsheets 24%
Lease accounting software 15%
Paper-based records 16%

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 41%
Lease accounting software 25%
Spreadsheets 18%
Paper-based records 11%
Not planning to change 5%
20-49 employees
Cutting-edge, advanced technologies 52%
Lease accounting software 19%
Spreadsheets 0%
Paper-based records 24%
Not planning to change 5%
50-99 employees
Cutting-edge, advanced technologies 42%
Lease accounting software 28%
Spreadsheets 17%
Paper-based records 3%
Not planning to change 11%
100-249 employees
Cutting-edge, advanced technologies 36%
Lease accounting software 36%
Spreadsheets 14%
Paper-based records 13%
Not planning to change 2%
250-499 employees
Cutting-edge, advanced technologies 43%
Lease accounting software 18%
Spreadsheets 21%
Paper-based records 16%
Not planning to change 2%
500-999 employees
Cutting-edge, advanced technologies 34%
Lease accounting software 19%
Spreadsheets 31%
Paper-based records 10%
Not planning to change 7%
1,000+ employees
Cutting-edge, advanced technologies 44%
Lease accounting software 27%
Spreadsheets 15%
Paper-based records 7%
Not planning to change 7%

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 47%
Internal resources only 39%
External resources only 14%
20-49 employees
Combination of internal and external resources 46%
Internal resources only 33%
External resources only 21%
50-99 employees
Combination of internal and external resources 44%
Internal resources only 40%
External resources only 16%
100-249 employees
Combination of internal and external resources 31%
Internal resources only 53%
External resources only 17%
250-499 employees
Combination of internal and external resources 53%
Internal resources only 34%
External resources only 13%
500-999 employees
Combination of internal and external resources 51%
Internal resources only 35%
External resources only 14%
1,000+ employees
Combination of internal and external resources 54%
Internal resources only 36%
External resources only 10%

Source: Robert Half and Protiviti survey of more than 500 private company CFOs in the United States; totals may not equal 100 percent due to rounding

*Multiple responses were allowed.

© 2019 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.

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