Lease Accounting Trends in Los Angeles

Lease Accounting Trends in Los Angeles Lease Accounting Trends in Los Angeles LEASE ACCOUNTING TRENDS IN LOS ANGELES Has your company begun the transition to the new lease accounting standard? Los Angeles U.S. Yes 40% 44% No 60% 56% Finance leaders who reported their company has begun the transition also were asked: As part of that transition, have you begun the diagnostic work necessary to determine the level of effort which wil be required for you to be ready to adopt the new standard? Los Angeles U.S. Yes, already completed 63% 48% Yes, started but not completed 37% 51% No, haven’t started 0% 1% Have you completed the following? Los Angeles U.S. Identified team members and responsibilities for completing the transition to a new standard 69% 61% Made an inventory of, and prioritized, any systems changes which might be required 50% 51% Developed a project plan to address all gaps emanating from the diagnostic work 64% 49% Identified, at a high level, the magnitude and type of the lease inventory (e.g., property, equipment) 55% 49% Written new accounting policies 36% 47% Written new accounting procedures 40% 43% Investigated any lease or property management systems which will facilitate adoption 47% 42% What is the most challenging aspect of the transition to the new standard? Los Angeles U.S. 1. Identifying, inventorying and categorizing company’s leases 1. Training staff 2. Updating technology 2. Diagnosing the needed changes 3. Diagnosing the needed changes 3. Finding professionals with the requisite expertise For your company, which new accounting standard has been more challenging to adopt? Los Angeles U.S. Revenue recognition 69% 71% Lease accounting 31% 29% 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? Los Angeles U.S. Most of them 29% 29% Some of them 38% 54% Almost none of them 33% 17% Source: Robert Half and Protiviti survey of more than 2,000 finance leaders in the United States, including 100 in Los Angeles Total may not equal 100 percent due to rounding.