KPMG’s 2018 Lease Accounting Change Survey

KPMG’s latest survey reveals that challenges continue to exist for companies implementing the new leases standard. As the deadline approaches, companies still have significant work to do. 

Applicability

• All companies in the scope of the new leases standard

Relevant dates

• Effective immediately

Key impacts

Key findings include:

• The top challenges companies face are identifying embedded leases and abstracting and entering leases into a leasing system
• Companies are dealing with challenges by having to request additional budget and hiring an advisor
• While 80% of companies expect to go live with most system changes before the effective date, the remainder expect at least some key components and system changes to go live afterwards

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Report contents

• Leases are numerous and dispersed
• Progress has been made, but is it enough?
• Private companies are taking the lessons learned and making some headway
• Considerable challenges exist
• The need for lease accounting software is causing companies to reconsider their implementation budgets
• Many believe system changes will go live before the effective date but it takes time
• For a more successful implementation, involve all stakeholders
• Companies are taking advantage of transition relief options
• Getting over the finish line

Related content

• Handbook: Leases
• Defining Issues: FASB approves targeted improvements to leases standard