Lease Accounting Trends in Detroit

Lease Accounting Trends in Detroit Lease Accounting Trends in Detroit LEASE ACCOUNTING TRENDS IN DETROIT Has your company begun the transition to the new lease accounting standard? Detroit U.S. Yes 46% 44% No 55% 56% Finance leaders who reported their company has begun the transition also were asked: As part of that transition, have you begun the diagnostic work necessary to determine the level of effort which wil be required for you to be ready to adopt the new standard? Detroit U.S. Yes, already completed 17% 48% Yes, started but not completed 83% 51% No, haven’t started 0% 1% Have you completed the following? Detroit U.S. Identified team members and responsibilities for completing the transition to a new standard 83% 61% Made an inventory of, and prioritized, any systems changes which might be required 20% 51% Developed a project plan to address all gaps emanating from the diagnostic work 27% 49% Identified, at a high level, the magnitude and type of the lease inventory (e.g., property, equipment) 20% 49% Written new accounting policies 20% 47% Written new accounting procedures 18% 43% Investigated any lease or property management systems which will facilitate adoption 25% 42% What is the most challenging aspect of the transition to the new standard? Detroit U.S. 1. Diagnosing the needed changes 1. Training staff 2. Finding professionals with the requisite expertise / Managing change (tie) 2. Diagnosing the needed changes 3. Identifying, inventorying and categorizing company’s leases 3. Finding professionals with the requisite expertise For your company, which new accounting standard has been more challenging to adopt? Detroit U.S. Revenue recognition 90% 71% Lease accounting 10% 29% 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? Detroit U.S. Most of them 10% 29% Some of them 67% 54% Almost none of them 23% 17% Source: Robert Half and Protiviti survey of more than 2,000 finance leaders in the United States, including 100 in Detroit Total may not equal 100 percent due to rounding.