Balance Sheet
Eighty percent of CFOs at U.S. companies have not yet begun the transition to the upcoming lease accounting standard, according to a new survey.
The Financial Accounting Standards Board issued its long-awaited standard on lease accounting in February 2016, giving public companies until 2019 and private companies until 2020 to adopt it. The main change in the standard is putting operating leases on the balance sheet. However, a survey released recently by Robert Half Management Resources found most companies procrastinating on the transition.
The largest companies, with 1,000 or more employees, are ahead of small organizations with between 20 and 49 employees. Twenty-two percent of the biggest businesses have started the transition, compared to 17 percent of the smallest.
A bigger percentage of the largest companies have at least started writing new accounting procedures and policies and developed a project plan to deal with gaps found in their diagnostic work.
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