Just 7% of company executives believe they are
prepared to comply with lease accounting standards as proposed by
the US standard setter, according to a Deloitte US survey.
Deloitte said that 80% of the survey
respondents believe the new lease accounting standard by the
Financial Accounting Standards Board (FASB) will place a
significant burden on financial reporting for tenants as well as
property owners.
More then 40% of the respondent said the
standards would make it more difficult to obtain financing and 68%
said it would have a material impact on their debt to equity
ratio.
The respondents have also said that the new
standard will require additional investment in their IT system.
“One-quarter of respondents said their companies are likely to have
to make a major upgrade to their information technology systems,
while 20 percent said they are likely to acquire a new system,”
Deloitte said.
The survey commissioned by Deloitte was
conducted online in December and gathered the opinions of 248 US
executives.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData