2017 lease accounting survey offers insights into overcoming implementation challenges and taking businesses to the next level
The EY Lease Accounting Survey finds that many companies see the new FASB standard as more than a compliance mandate, but a business transformation opportunity.
With public company implementations effective in 2019, there is still time for companies to comply and reap the broader business benefits associated with the changes. By upgrading systems, organizations can transform their businesses through process re-engineering, lease cost reduction and tax efficiency.
But there are also challenges, including collecting required data, insufficient allocation of people resources and difficulty interpreting the standard’s technical requirement. Companies can overcome these by aligning finance, corporate real estate, procurement, IT, tax and treasury organizations.
Our survey of 300 finance and IT leaders of US public companies with more than $1 billion in annual revenue found that many CIOs and CFOs say that the new lease accounting standard can deliver business transformation. The majority of respondents plan to implement systems changes and improve their IT systems. With lessons learned from revenue recognition changes, companies should identify their business requirements for lease administration and accounting in order to evaluate system options quickly, as new systems can take nine months or longer to implement.
Read more about the results to gain a new perspective on achieving Accounting Change compliance efficiently while also laying the foundation for future business benefits.