KPMG’s Lease Accounting Survey reveals the key remaining challenges and provides insight into how to respond
With only months left before the new lease accounting standard becomes effective, KPMG’s latest survey reveals that a large percentage of public companies still have significant work to do. Collecting and validating data is most difficult and the entire process is more complex and expensive than anticipated for both public and private companies. Companies need to use their remaining time wisely and focus on any roadblocks to implementation.
According to this latest KPMG survey of almost 400 companies, many companies are still struggling with challenges that are making it hard to reach the implementation finish line. Compared to last year, some progress has been made, particularly in selecting a lease accounting software (from 18 percent to 54 percent) and performing a lease inventory (from 29 percent to 40 percent); however, only small improvements have been made in other key activities, such as collecting and validating data (from 4 percent to 11 percent) and completing an accounting assessment (from 13 percent to 19 percent).
A significant number of companies may have underestimated just how time consuming the process is and are currently scrambling to meet the deadline.
Other key survey insights include:
Download the survey results for additional insights.