LeaseCrunch Survey of CPA firm auditors finds 41% of GASB and non-public FASB clients have not completed implementation of the new lease standard
Industry: Business
GASB 87 must be implemented for fiscal years beginning after June 15, 2021; Nearly half of clients will not adopt early implementation of the new lease standard; Top anticipated areas of problems: incremental borrowing rates, lease terms, and fair values and effective lives.
Milwaukee, WI (PRUnderground) June 17th, 2021
A survey of auditors at CPA firms conducted by LeaseCrunch, a cloud-based lease accounting software company, finds that only a little over half of their GASB and non-public FASB clients have completed implementation of the new lease accounting standard, GASB 87.
Key findings from the survey:
- 41 percent have not completed implementation of GASB 87.
- 48 percent will not adopt early implementation of the new lease standard.
- Incremental borrowing rates (50%), lease terms (28%), and fair values and effective lives (9%) are the three top problems facing filers.
- 22 percent have not completed their lease inventory.
- Over 80% had their clients’ leases affected by COVID-19.
“CPA Firms are playing a critical role in helping companies meet the new lease accounting rules, particularly due to the level of complexity and changes,” said LeaseCrunch CEO Ane Ohm.
For instance, what previously might have been considered operating or capital leases will now all be treated as finance leases, which is similar to a capital lease. For what was previously classified as an operating lease, this will have an effect on the Statement of Financial Position and balance sheet.”
LeaseCrunch has helpful tools for CPA Firms to assist clients with implementing the new standard, including this GASB 62 to GASB 87 side-by-side financial statement impact guide. For more resources to help with implementation, visit www.leasecrunch.com.
About the survey
Auditors from 21 different CPA firms were surveyed during the months of March and April 2021.
About LeaseCrunch
Named by Accounting Today as one of the top new products of 2019, LeaseCrunch provides cloud-based lease accounting software for CPA firms, designed to help organizations implement the new lease accounting standards, ASC 842 and IFRS 16.
Designed by CPAs, former Big 4 public accounting auditors, software development veterans and a former member of the FASB staff, the application offers an easy-to-use customer interface that delivers “audit in a box” lease accounting services, reducing the time it takes clients to prepare for an audit. LeaseCrunch allows companies to identify policy elections for the leasing standard through templates for both US GAAP and IFRS. For more information go to: www.LeaseCrunch.com
