Your Company and the New Lease Accounting Standard

Your Company and the New Lease Accounting StandardYour Company and the New Lease Accounting Standard LEASE ACCOUNTING STANDARD ADOPTION, BY INDUSTRYHas your company begun the transition to the new lease accounting standard?YesNoNational44% 56%geschftlicher umgang Services71%29%Construction25%75%Finance56%44%Manufacturing45%55%Professional Services48%52%Retail/Wholesale31%70%Transportation/Public Utilities61%39%Other32%68%Finance leaders who reported their company has begun the transition also were asked the questions belowAs 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 completedYes, started but not completedNo, havent startedNational48%51%1%geschftliches miteinander Services33%67%0%Construction49%51%0%Finance35%65%0%Manufacturing47%49%4%Professional Services58%41%1%Retail/Wholesale49%50%1%Transportation/Public Utilities64%36%0%Other41%54%5%Have y ou completed the following?Identified team members and responsibilities for completing the transition to new standardNational61%geschftliches miteinander Services65%Construction77%Finance56%Manufacturing57%Professional Services63%Retail/Wholesale59%Transportation/Public Utilities55%Other42%Made an inventory of, and prioritized, any systems changes which might be requiredNational51%Business Services42%Construction65%Finance47%Manufacturing52%Professional Services50%Retail/Wholesale62%Transportation/Public Utilities57%Other39%Developed a project plan to address all gaps emanating from the diagnostic workNational49%Business Services38%Construction50%Finance44%Manufacturing51%Professional Services63%Retail/Wholesale40%Transportation/Public Utilities57%Other43%Identified, at a high level, the magnitude and type of the lease inventory (e.g., property, equipment)National49%Business Services41%Construction66%Finance50%Manufacturing52%Professional Services48%Retail/Wholesale46%Transportation /Public Utilities71%Other42%Written new accounting policiesNational47%Business Services55%Construction51%Finance46%Manufacturing43%Professional Services41%Retail/Wholesale48%Transportation/Public Utilities57%Other34%Written new accounting proceduresNational43%Business Services39%Construction36%Finance45%Manufacturing38%Professional Services44%Retail/Wholesale52%Transportation/Public Utilities58%Other27%Investigated any lease or property management systems which will facilitate adoptionNational42%Business Services28%Construction50%Finance41%Manufacturing55%Professional Services34%Retail/Wholesale48%Transportation/Public Utilities71%Other44%What is the most challenging aspect of the transition to the new standard?National1. Training staff2. Diagnosing the needed changes3. Finding professionals with the requisite experienceBusiness Services1. Diagnosing the needed changes2. Training staff3. Identifying, inventorying and categorizing companys leasesConstruction1.Finding professionals wi th the requisite expertise2.Diagnosing the needed changes3.Identifying, inventorying and categorizing companys leasesFinance1.Training staff2.Identifying, inventorying and categorizing companys leases3.Updating technologyManufacturing1.Finding professionals with the requisite expertise2.Training staff3.Managing changeProfessional Services1.Diagnosing the needed changes2.Training staff3.Updating technologyRetail/Wholesale1.Training staff2.Finding professionals with the requisite expertise3.Diagnosing the needed changesTransportation/Public Utilities1.Identifying, inventorying and categorizing companys leases2.Managing change3.Updating technologyOther1.Finding professionals with the requisite expertise2.Diagnosing the needed changes3.Training staffFor your company, which new accounting standard has been more challenging to adopt?Revenue recognitionLease accountingNational71% 29%Business Services69%31%Construction71%30%Finance72%28%Manufacturing75%25%Professional Services78%22%Retail/W holesale69%31%Transportation/Public Utilities50%50%Other60%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 themSome of themAlmost none of themNational29%54%17%Business Services29%68%3%Construction17%61%22%Finance26%62%12%Manufacturing46%46%8%Professional Services32%56%12%Retail/Wholesale21%45%34%Transportation/Public Utilities31%61%9%Other30%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