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Companies are slowly taking steps to adopt new accounting standards for leased assets, according to a report from PricewaterhouseCoopers and CBRE Group. The study found that only 23% of more than 600 finance executives said their companies have yet to begin the initial adoption process of the standards
The new lease accounting standards, issued by the Financial Accounting Standards Boards (FASB) and International Accounting Standards Board, require companies to elevate leased assets and related liabilities out of footnote disclosures and onto the face of their balance sheets, according to a report from Compliance Week. The standards into effect for public companies in 2019 and private companies in 2020.
More than half of the study participants said they were assessing the impacts of the new rules, and 25 percent said they had started implementation. Among those in the implementation phase, 47 percent said adoption was taking more effort than expected. In last year’s survey, 84 percent of respondents said they planned to begin implementation this year.
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