- Only 36 percent of respondents maintain lease information centrally while 60 percent of respondents account for their leases manually with spreadsheets, which is expected to present significant challenges in terms of data gathering, data accuracy and internal controls when adopting the new standard.
- Almost half of respondents have already performed an inventory of their lease portfolio in advance of adoption of the new standard.
- At this point, only nine percent of respondents have calculated an estimate of their adoption date lease liability; of those, 67 percent anticipate their liability will be higher than initially expected.
- More than half of respondents expect the proposed standard to impact the amount or timing of reported revenue recognition for their company.
- One of the greatest areas of significance for respondents was the possibility that full retrospective application would be required.
- More than half of respondents anticipate a moderate to high impact on their financial instrument reporting; however, only 19 percent of respondents were from the financial services industry, indicating that companies in a range of industries expect the financial instruments project to have a moderate to high impact on them.
- Of those who performed an analysis of the likely impact of the financial instruments proposals, respondents expected an increase in the use of fair value and, consequently, increased income statement volatility.
- Convergence is broadly expected to give way to IFRS adoption in the US, with 80 percent of respondents believing that IFRS will be adopted in the US in or after 2015, and only 13 percent believing that IFRS will not be adopted at all.
About the Survey
- Five Best Practices for Successful A/P Automation — A look at why accounts payable must be an enterprise-wide initiative
- The Evolutionary Investment in Accounts Payable Automation — By overcoming challenges in A/P automation, companies can increase accuracy, save time and money, and gain control over finances
- Friday Business Feature: Corporate Budgeting Should Be a Tool for Strategic Focus — As companies begin the annual budgeting process, they should step back and focus on the capabilities that make them different and better — then double down on those