US executives unprepared for accounting changes
Research conducted by Deloitte finds US businesses are not ready for proposed lease accounting changes
US EXECUTIVES ARE UNPREPARED to deal with changes to lease accounting rules proposed by the International Accounting Standards Board (IASB), according to Deloitte research.
Deloitte found just 7% of respondents questioned believed their company was “extremely” or “very” prepared for the possible changes.
The firm questioned 284 individuals who either lease to or from an organisation.
The suggested changes require more detailed information to be included in financial reports such as how to account for leases relating to property and equipment.
Mark Beddy, real estate partner Deloitte UK, said: “The evidence from the US is consistent with the key issues which have concerned property owners and occupiers in the UK about the proposed new lease accounting regime.
“It highlights the considerable compliance burden which any new standard will impose, together with continued worries about the impact on financing, lease lengths and property strategy.”
More than 40% of respondents believe the new standards will make it difficult to obtain financing in the future.
The draft proposal is expected to be finalised in June.