LEASE ACCOUNTING STANDARD ADOPTION, BY INDUSTRY
Has your company begun the transition to the new lease accounting standard?
| Yes | No | |||
|---|---|---|---|---|
| National | 44% | 56% | ||
| Business Services | 71% | 29% | ||
| Construction | 25% | 75% | ||
| Finance | 56% | 44% | ||
| Manufacturing | 45% | 55% | ||
| Professional Services | 48% | 52% | ||
| Retail/Wholesale | 31% | 70% | ||
| Transportation/ Public Utilities | 61% | 39% | ||
| Other | 32% | 68% |
Finance leaders who reported their company has begun the transition also were asked the questions below:
As part of that transition, have you begun the diagnostic work necessary to determine the level of effort which will be required for you to be ready to adopt the new standard?
| Yes, already completed | Yes, started but not completed | No, haven't started | ||
|---|---|---|---|---|
| National | 48% | 51% | 1% | |
| Business Services | 33% | 67% | 0% | |
| Construction | 49% | 51% | 0% | |
| Finance | 35% | 65% | 0% | |
| Manufacturing | 47% | 49% | 4% | |
| Professional Services | 58% | 41% | 1% | |
| Retail/Wholesale | 49% | 50% | 1% | |
| Transportation/Public Utilities | 64% | 36% | 0% | |
| Other | 41% | 54% | 5% |
Have you completed the following?
Identified team members and responsibilities for completing the transition to new standard:
| National | 61% | |
| Business Services | 65% | |
| Construction | 77% | |
| Finance | 56% | |
| Manufacturing | 57% | |
| Professional Services | 63% | |
| Retail/Wholesale | 59% | |
| Transportation/Public Utilities | 55% | |
| Other | 42% |
Made an inventory of, and prioritized, any systems changes which might be required:
| National | 51% | |
| Business Services | 42% | |
| Construction | 65% | |
| Finance | 47% | |
| Manufacturing | 52% | |
| Professional Services | 50% | |
| Retail/Wholesale | 62% | |
| Transportation/Public Utilities | 57% | |
| Other | 39% |
Developed a project plan to address all gaps emanating from the diagnostic work:
| National | 49% | |
| Business Services | 38% | |
| Construction | 50% | |
| Finance | 44% | |
| Manufacturing | 51% | |
| Professional Services | 63% | |
| Retail/Wholesale | 40% | |
| Transportation/Public Utilities | 57% | |
| Other | 43% |
Identified, at a high level, the magnitude and type of the lease inventory (e.g., property, equipment):
| National | 49% | |
| Business Services | 41% | |
| Construction | 66% | |
| Finance | 50% | |
| Manufacturing | 52% | |
| Professional Services | 48% | |
| Retail/Wholesale | 46% | |
| Transportation/Public Utilities | 71% | |
| Other | 42% |
Written new accounting policies:
| National | 47% | |
| Business Services | 55% | |
| Construction | 51% | |
| Finance | 46% | |
| Manufacturing | 43% | |
| Professional Services | 41% | |
| Retail/Wholesale | 48% | |
| Transportation/Public Utilities | 57% | |
| Other | 34% |
Written new accounting procedures:
| National | 43% | |
| Business Services | 39% | |
| Construction | 36% | |
| Finance | 45% | |
| Manufacturing | 38% | |
| Professional Services | 44% | |
| Retail/Wholesale | 52% | |
| Transportation/Public Utilities | 58% | |
| Other | 27% |
Investigated any lease or property management systems which will facilitate adoption:
| National | 42% | |
| Business Services | 28% | |
| Construction | 50% | |
| Finance | 41% | |
| Manufacturing | 55% | |
| Professional Services | 34% | |
| Retail/Wholesale | 48% | |
| Transportation/Public Utilities | 71% | |
| Other | 44% |
What is the most challenging aspect of the transition to the new standard?
National
| 1. Training staff | |
| 2. Diagnosing the needed changes | |
| 3. Finding professionals with the requisite experience |
Business Services
| 1. Diagnosing the needed changes | |
| 2. Training staff | |
| 3. Identifying, inventorying and categorizing company’s leases |
Construction
| 1. Finding professionals with the requisite expertise | |
| 2. Diagnosing the needed changes | |
| 3. Identifying, inventorying and categorizing company’s leases |
Finance
| 1. Training staff | |
| 2. Identifying, inventorying and categorizing company’s leases | |
| 3. Updating technology |
Manufacturing
| 1. Finding professionals with the requisite expertise | |
| 2. Training staff | |
| 3. Managing change |
Professional Services
| 1. Diagnosing the needed changes | |
| 2. Training staff | |
| 3. Updating technology |
Retail/Wholesale
| 1. Training staff | |
| 2. Finding professionals with the requisite expertise | |
| 3. Diagnosing the needed changes |
Transportation/Public Utilities
| 1. Identifying, inventorying and categorizing company’s leases | |
| 2. Managing change | |
| 3. Updating technology |
Other
| 1. Finding professionals with the requisite expertise | |
| 2. Diagnosing the needed changes | |
| 3. Training staff |
For your company, which new accounting standard has been more challenging to adopt?
| Revenue recognition | Lease accounting | |||
|---|---|---|---|---|
| National | 71% | 29% | ||
| Business Services | 69% | 31% | ||
| Construction | 71% | 30% | ||
| Finance | 72% | 28% | ||
| Manufacturing | 75% | 25% | ||
| Professional Services | 78% | 22% | ||
| Retail/Wholesale | 69% | 31% | ||
| Transportation/ Public Utilities | 50% | 50% | ||
| Other | 60% | 40% |
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?
| Most of them | Some of them | Almost none of them | ||
|---|---|---|---|---|
| National | 29% | 54% | 17% | |
| Business Services | 29% | 68% | 3% | |
| Construction | 17% | 61% | 22% | |
| Finance | 26% | 62% | 12% | |
| Manufacturing | 46% | 46% | 8% | |
| Professional Services | 32% | 56% | 12% | |
| Retail/Wholesale | 21% | 45% | 34% | |
| Transportation/Public Utilities | 31% | 61% | 9% | |
| Other | 30% | 47% | 23% |
Source: Robert Half and Protiviti survey of more than 2,000 U.S. finance leaders; totals may not equal 100 percent due to rounding
© 2018 Robert Half International Inc. An Equal Opportunity Employer M/F/Disability/Veterans.
