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.
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