Your Company and the New Lease Accounting Standard: Data Tables by Industry

LEASE ACCOUNTING STANDARD ADOPTION, BY INDUSTRY

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

	Yes	No
National	44%	56%
Business Services	71%	29%
Construction	25%	75%
Finance	56%	44%
Manufacturing	45%	55%
Professional Services	48%	52%
Retail/Wholesale	31%	70%
Transportation/ Public Utilities	61%	39%
Other	32%	68%

Finance leaders who reported their company has begun the transition also were asked the questions below:

As part of that transition, have you begun the diagnostic work necessary to determine the level of effort which will be required for you to be ready to adopt the new standard?

	Yes, already completed	Yes, started but not completed	No, haven't started
National	48%	51%	1%
Business Services	33%	67%	0%
Construction	49%	51%	0%
Finance	35%	65%	0%
Manufacturing	47%	49%	4%
Professional Services	58%	41%	1%
Retail/Wholesale	49%	50%	1%
Transportation/Public Utilities	64%	36%	0%
Other	41%	54%	5%

Have you completed the following?

Identified team members and responsibilities for completing the transition to new standard:

	National	61%
	Business Services	65%
	Construction	77%
	Finance	56%
	Manufacturing	57%
	Professional Services	63%
	Retail/Wholesale	59%
	Transportation/Public Utilities	55%
	Other	42%

Made an inventory of, and prioritized, any systems changes which might be required:

	National	51%
	Business Services	42%
	Construction	65%
	Finance	47%
	Manufacturing	52%
	Professional Services	50%
	Retail/Wholesale	62%
	Transportation/Public Utilities	57%
	Other	39%

Developed a project plan to address all gaps emanating from the diagnostic work:

	National	49%
	Business Services	38%
	Construction	50%
	Finance	44%
	Manufacturing	51%
	Professional Services	63%
	Retail/Wholesale	40%
	Transportation/Public Utilities	57%
	Other	43%

Identified, at a high level, the magnitude and type of the lease inventory (e.g., property, equipment):

	National	49%
	Business Services	41%
	Construction	66%
	Finance	50%
	Manufacturing	52%
	Professional Services	48%
	Retail/Wholesale	46%
	Transportation/Public Utilities	71%
	Other	42%

Written new accounting policies:

	National	47%
	Business Services	55%
	Construction	51%
	Finance	46%
	Manufacturing	43%
	Professional Services	41%
	Retail/Wholesale	48%
	Transportation/Public Utilities	57%
	Other	34%

Written new accounting procedures:

	National	43%
	Business Services	39%
	Construction	36%
	Finance	45%
	Manufacturing	38%
	Professional Services	44%
	Retail/Wholesale	52%
	Transportation/Public Utilities	58%
	Other	27%

Investigated any lease or property management systems which will facilitate adoption:

	National	42%
	Business Services	28%
	Construction	50%
	Finance	41%
	Manufacturing	55%
	Professional Services	34%
	Retail/Wholesale	48%
	Transportation/Public Utilities	71%
	Other	44%

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

National

	1. Training staff
	2. Diagnosing the needed changes
	3. Finding professionals with the requisite experience

Business Services

	1. Diagnosing the needed changes
	2. Training staff
	3. Identifying, inventorying and categorizing company’s leases

Construction

	1. Finding professionals with the requisite expertise
	2. Diagnosing the needed changes
	3. Identifying, inventorying and categorizing company’s leases

Finance

	1. Training staff
	2. Identifying, inventorying and categorizing company’s leases
	3. Updating technology

Manufacturing

	1. Finding professionals with the requisite expertise
	2. Training staff
	3. Managing change

Professional Services

	1. Diagnosing the needed changes
	2. Training staff
	3. Updating technology

Retail/Wholesale

	1. Training staff
	2. Finding professionals with the requisite expertise
	3. Diagnosing the needed changes

Transportation/Public Utilities

	1. Identifying, inventorying and categorizing company’s leases
	2. Managing change
	3. Updating technology

Other

	1. Finding professionals with the requisite expertise
	2. Diagnosing the needed changes
	3. Training staff

For your company, which new accounting standard has been more challenging to adopt?

	Revenue recognition	Lease accounting
National	71%	29%
Business Services	69%	31%
Construction	71%	30%
Finance	72%	28%
Manufacturing	75%	25%
Professional Services	78%	22%
Retail/Wholesale	69%	31%
Transportation/ Public Utilities	50%	50%
Other	60%	40%

How much of the processes and learnings from transitioning to the new revenue recognition standard have you been able to apply to adopting the new lease accounting standard?

	Most of them	Some of them	Almost none of them
National	29%	54%	17%
Business Services	29%	68%	3%
Construction	17%	61%	22%
Finance	26%	62%	12%
Manufacturing	46%	46%	8%
Professional Services	32%	56%	12%
Retail/Wholesale	21%	45%	34%
Transportation/Public Utilities	31%	61%	9%
Other	30%	47%	23%

Source: Robert Half and Protiviti survey of more than 2,000 U.S. finance leaders; totals may not equal 100 percent due to rounding