According to a February 2019 Deloitte poll, nearly half of public company executives see no slowdown ahead in the time and effort to be spent for implementation of lease accounting standards issued by the FASB and IASB. In fact, after they file Q1 2019 earnings, one-quarter (25 percent) expect to spend the same amount of time and effort on lease implementation and nearly as many (23.9 percent) plan to spend more. https://deloi.tt/2FKmLmz

1. Lease accounting: A Q&A with public
company finance leaders
Deloitte poll results from February 2019

2. Lease accounting: A Q&A with public company finance leadersCopyright © 2019 Deloitte Development LLC. All rights reserved. 2
Methodology
C-suite and other executives were polled
online during a Deloitte Center for
ControllershipTM Dbriefs webcast, titled “Lease
accounting: A Q&A with public company
finance leaders,” on Feb. 28, 2019. Similar
online polls were conducted in October 2018,
April 2018, January 2018, May 2017, October
2016 and March 2016. Answer rates differed
by question and respondents differed by
webcast poll.
In some instances, immaterial amounts (e.g., +/-
0.1%) have been added to or removed from the “Don’t
know/not applicable” answer responses to bring results
to 100% total for each question.
950+
2

3. Lease accounting: A Q&A with public company finance leadersCopyright © 2019 Deloitte Development LLC. All rights reserved. 3
3.3%
22.0%
7.1%
48.0%
4.0%
40.3%
3.8%
32.3%
3.2%
42.2%
3.5%
33.0%
4.3%
44.6%
5.7%
25.4%
5.7%
40.0%
6.1%
29.9%
Early adopt, public
company
Adopt on schedule,
public company
Early adopt, private
organization
Adopt on schedule,
private organization
Mar-16 May-17 Apr-18 Oct-18 Feb-19
Which best describes your organization’s likely lease accounting
implementation timeline?
Findings over time; C-suite and other executives only
Votes received: 1,320 (Mar 2016); 2,562 (May 2017); 2,321 (Apr 2018); 1,922 (Oct 2018); 1,781 (Feb
2019)
Don’t Know / Not Applicable = 19.6% (Mar 2016); 19.6% (May 2017); 18.1% (Apr 2018); 20% (Oct 2018); 18.3% (Feb 2019)
Public companies Private organizations

4. Lease accounting: A Q&A with public company finance leadersCopyright © 2019 Deloitte Development LLC. All rights reserved. 4
How prepared is your organization to comply with the new lease
accounting standard?
Findings over time; C-suite and other executives only
Votes received: 946 (Oct 2016); 1,976 (May 2017); 1,838 (Apr 2018); 1,367 (Oct 2018); 1,322 (Feb
2019)
Prepared = Respondents selecting “extremely prepared” or “very prepared” answer options.
Unprepared = Respondents selecting “not too prepared” or “not at all prepared” answer options.
Don’t Know / Not Applicable = 5.2% public and 6.3% private (Oct 2016); 4.6% public and 4% private (May 2017); 3% public and
4.5% private (Apr 2018); 3.2% public and 3% private (Oct 2018); 1.8% public and 6.1% private (Feb 2019)
Prepared Somewhat prepared Unprepared
Public companies Private organizations
44.8%
44.2%
45.2%
36.1%
33.2%
41.1%
45.3%
41.4%
44.4%
43.8%
7.8%
6.5%
8.9%
16.5%
16.9%
Oct-16
May-17
Apr-18
Oct-18
Feb-19
26.7%
26.4%
21.4%
9.4%
6.9%
45.5%
51.2%
52.6%
41.9%
30.6%
22.6%
17.8%
23.0%
45.5%
60.7%
Oct-16
May-17
Apr-18
Oct-18
Feb-19

5. Lease accounting: A Q&A with public company finance leadersCopyright © 2019 Deloitte Development LLC. All rights reserved. 5
Which technology approach is your organization using to
implement lease accounting?
Not Applicable = 3.7% public and 4.6% private (Feb 2019)
C-suite and other executive findings
Votes received: 1,389 (779 public, 610 private; Feb 2019)
52.6%
30.8%
6.7%
6.2%
13.4%
43.8%
29.5%
8.7%
Lease accounting specific software
Manual efforts and existing software
(i.e., not lease accounting specific
software)
Don't know, still trying to determine
approach to adoption
Don't know, reassessing technology
as initial lease accounting software
effort did not work
Public companies Private organizations

6. Lease accounting: A Q&A with public company finance leadersCopyright © 2019 Deloitte Development LLC. All rights reserved. 6
Will the time and effort your organization spends on lease
accounting implementation change after its first quarter financial
reporting under the new leases standard(s)?
Don’t Know / Not Applicable = 13.8% public and 24% private (Feb 2019)
C-suite and other executive findings
Votes received: 1,285 (715 public, 570 private; Feb 2019)
23.9%
25.0%
37.3%
27.4%
27.9%
20.7%
Yes-Increase: We plan to spend more
time and effort honing our
implementation work in the year ahead
No change: We plan to spend the same
amount of time and effort spent on
implementation in the year ahead
Yes-Decrease: We plan to spend less
time and effort on implementation work
in the year ahead
Public companies Private organizations

7. Lease accounting: A Q&A with public company finance leadersCopyright © 2019 Deloitte Development LLC. All rights reserved. 7
Media contact
Shelley Pfaendler
Public Relations
Deloitte Services LP
spfaendler@deloitte.com
Dan Mucisko
Public Relations
Deloitte Services LP
dmucisko@deloitte.com
Full press release available on
Deloitte.com
8

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Copyright © 2019 Deloitte Development LLC. All rights reserved.
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