LEASE ACCOUNTING STANDARD ADOPTION AT PRIVATE COMPANIES, BY INDUSTRY
Has your company begun the transition to the new lease accounting standard?
| Yes, completed | Yes, started but not completed | No | |||
|---|---|---|---|---|---|
| NATIONAL | 56% | 26% | 18% | ||
| BUSINESS SERVICES | 59% | 28% | 13% | ||
| CONSTRUCTION | 57% | 25% | 18% | ||
| FINANCE | 53% | 30% | 18% | ||
| MANUFACTURING | 51% | 23% | 26% | ||
| PROFESSIONAL SERVICES | 54% | 27% | 19% | ||
| RETAIL/WHOLESALE | 48% | 34% | 18% | ||
| TRANSPORTATION/PUBLIC UTILITIES | 69% | 25% | 6% | ||
| OTHER | 63% | 23% | 14% |
CFOs who reported their company hasn’t completed the transition also were asked the question below:
How concerned are you about meeting the deadline?
| Very concerned | Somewhat concerned | Not at all concerned | ||
|---|---|---|---|---|
| NATIONAL | 18% | 44% | 39% | |
| BUSINESS SERVICES | 15% | 69% | 15% | |
| CONSTRUCTION | 31% | 24% | 45% | |
| FINANCE | 35% | 31% | 35% | |
| MANUFACTURING | 15% | 44% | 41% | |
| PROFESSIONAL SERVICES | 5% | 59% | 37% | |
| RETAIL/WHOLESALE | 9% | 53% | 38% | |
| TRANSPORTATION/PUBLIC UTILITIES | 20% | 40% | 40% | |
| OTHER | 19% | 38% | 44% |
What is the most challenging aspect of the transition to the new standard?
(Answer options included: diagnosing the needed changes; finding professionals with the requisite expertise; identifying, inventorying and categorizing company’s leases; managing change; training staff; updating technology)
| NATIONAL | Training staff | |
| BUSINESS SERVICES | Identifying, inventorying and categorizing company’s leases | |
| CONSTRUCTION | Training staff | |
| FINANCE | Identifying, inventorying and categorizing company’s leases | |
| MANUFACTURING | Managing change | |
| PROFESSIONAL SERVICES | Training staff | |
| RETAIL/WHOLESALE | Training staff | |
| TRANSPORTATION/PUBLIC UTILITIES | Identifying, inventorying and categorizing company’s leases | |
| OTHER | Managing change |
CFOs who reported their company has completed the transition also were asked the questions below:
Which of the tools did you use for first-year compliance with the new lease accounting standard?
| NATIONAL |
| Cutting-edge, advanced technologies 59% |
| Spreadsheets 52% |
| Lease accounting software 49% |
| Paper-based records 39% |
| BUSINESS SERVICES |
| Cutting-edge, advanced technologies 47% |
| Spreadsheets 47% |
| Lease accounting software 42% |
| Paper-based records 32% |
| CONSTRUCTION |
| Cutting-edge, advanced technologies 67% |
| Spreadsheets 44% |
| Lease accounting software 59% |
| Paper-based records 49% |
| FINANCE |
| Cutting-edge, advanced technologies 66% |
| Spreadsheets 47% |
| Lease accounting software 31% |
| Paper-based records 41% |
| MANUFACTURING |
| Cutting-edge, advanced technologies 69% |
| Spreadsheets 69% |
| Lease accounting software 47% |
| Paper-based records 36% |
| PROFESSIONAL SERVICES |
| Cutting-edge, advanced technologies 48% |
| Spreadsheets 52% |
| Lease accounting software 50% |
| Paper-based records 38% |
| RETAIL/WHOLESALE |
| Cutting-edge, advanced technologies 47% |
| Spreadsheets 50% |
| Lease accounting software 40% |
| Paper-based records 50% |
| TRANSPORTATION/PUBLIC UTILITIES |
| Cutting-edge, advanced technologies 73% |
| Spreadsheets 82% |
| Lease accounting software 27% |
| Paper-based records 55% |
| OTHER |
| Cutting-edge, advanced technologies 58% |
| Spreadsheets 47% |
| Lease accounting software 58% |
| Paper-based records 31% |
Which tool did you rely on most?
| NATIONAL |
| Cutting-edge, advanced technologies 40% |
| Spreadsheets 24% |
| Lease accounting software 22% |
| Paper-based records 14% |
| BUSINESS SERVICES |
| Cutting-edge, advanced technologies 42% |
| Spreadsheets 11% |
| Lease accounting software 26% |
| Paper-based records 21% |
| CONSTRUCTION |
| Cutting-edge, advanced technologies 44% |
| Spreadsheets 21% |
| Lease accounting software 21% |
| Paper-based records 15% |
| FINANCE |
| Cutting-edge, advanced technologies 44% |
| Spreadsheets 25% |
| Lease accounting software 16% |
| Paper-based records 16% |
| MANUFACTURING |
| Cutting-edge, advanced technologies 47% |
| Spreadsheets 19% |
| Lease accounting software 22% |
| Paper-based records 11% |
| PROFESSIONAL SERVICES |
| Cutting-edge, advanced technologies 42% |
| Spreadsheets 25% |
| Lease accounting software 23% |
| Paper-based records 10% |
| RETAIL/WHOLESALE |
| Cutting-edge, advanced technologies 30% |
| Spreadsheets 30% |
| Lease accounting software 13% |
| Paper-based records 27% |
| TRANSPORTATION/PUBLIC UTILITIES |
| Cutting-edge, advanced technologies 27% |
| Spreadsheets 36% |
| Lease accounting software 0% |
| Paper-based records 36% |
| OTHER |
| Cutting-edge, advanced technologies 37% |
| Spreadsheets 27% |
| Lease accounting software 28% |
| Paper-based records 7% |
If you plan to change your approach to compliance in future years, which tool do you anticipate relying on most?
| NATIONAL |
| Cutting-edge, advanced technologies 41% |
| Lease accounting software 25% |
| Spreadsheets 18% |
| Paper-based records 11% |
| Not planning to change 5% |
| BUSINESS SERVICES |
| Cutting-edge, advanced technologies 47% |
| Lease accounting software 16% |
| Spreadsheets 5% |
| Paper-based records 21% |
| Not planning to change 11% |
| CONSTRUCTION |
| Cutting-edge, advanced technologies 44% |
| Lease accounting software 23% |
| Spreadsheets 18% |
| Paper-based records 15% |
| Not planning to change 0% |
| FINANCE |
| Cutting-edge, advanced technologies 47% |
| Lease accounting software 19% |
| Spreadsheets 16% |
| Paper-based records 3% |
| Not planning to change 16% |
| MANUFACTURING |
| Cutting-edge, advanced technologies 42% |
| Lease accounting software 17% |
| Spreadsheets 11% |
| Paper-based records 17% |
| Not planning to change 14% |
| PROFESSIONAL SERVICES |
| Cutting-edge, advanced technologies 48% |
| Lease accounting software 19% |
| Spreadsheets 25% |
| Paper-based records 4% |
| Not planning to change 4% |
| RETAIL/WHOLESALE |
| Cutting-edge, advanced technologies 33% |
| Lease accounting software 27% |
| Spreadsheets 23% |
| Paper-based records 17% |
| Not planning to change 0% |
| TRANSPORTATION/PUBLIC UTILITIES |
| Cutting-edge, advanced technologies 46% |
| Lease accounting software 36% |
| Spreadsheets 9% |
| Paper-based records 9% |
| Not planning to change 0% |
| OTHER |
| Cutting-edge, advanced technologies 32% |
| Lease accounting software 35% |
| Spreadsheets 21% |
| Paper-based records 10% |
| Not planning to change 3% |
CFOS who reported their company has started or completed the transition also were asked the question below:
How do you anticipate staffing future lease accounting compliance initiatives?
| NATIONAL |
| Combination of internal and external resources 47% |
| Internal resources only 39% |
| External resources only 14% |
| BUSINESS SERVICES |
| Combination of internal and external resources 54% |
| Internal resources only 39% |
| External resources only 7% |
| CONSTRUCTION |
| Combination of internal and external resources 52% |
| Internal resources only 38% |
| External resources only 11% |
| FINANCE |
| Combination of internal and external resources 50% |
| Internal resources only 38% |
| External resources only 12% |
| MANUFACTURING |
| Combination of internal and external resources 56% |
| Internal resources only 29% |
| External resources only 15% |
| PROFESSIONAL SERVICES |
| Combination of internal and external resources 42% |
| Internal resources only 42% |
| External resources only 17% |
| RETAIL/WHOLESALE |
| Combination of internal and external resources 41% |
| Internal resources only 39% |
| External resources only 20% |
| TRANSPORTATION/PUBLIC UTILITIES |
| Combination of internal and external resources 47% |
| Internal resources only 40% |
| External resources only 13% |
| OTHER |
| Combination of internal and external resources 42% |
| Internal resources only 43% |
| External resources only 14% |
Source: Robert Half and Protiviti survey of more than 500 private company CFOs in the United States; totals may not equal 100 percent due to rounding
*Multiple responses were allowed.
© 2019 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
