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Global Leasing Survey: an Australian perspective

Global Leasing Survey: an Australian perspective

While the survey of global companies has found that many still have work to do even after the effective date for the new standard, Australian companies appear to be finding the implementation relatively more straight-forward. But the experience of overseas companies with an earlier transition date is that significant challenges continue to be uncovered as projects progress, particularly those relating to the completeness of their lease portfolio and system implementation.


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These are among the findings of KPMG's survey of over 800 companies from around the world, including a significant number of Australian companies – the results of which are presented in the report, Lease accounting is here: are you ready? It found that two thirds of global respondents (67%) admitted they were not on track with their lease accounting projects due to challenges they were facing. However, only half (52%) of Australian respondents shared the same feeling on the status of their lease accounting project. Our Australian supplement (PDF 1.1 MB) highlights results from Australian respondents.

The new lease accounting standard – AASB 16 Leases – supersedes the existing AASB 117 Leases and will fundamentally alter the Balance Sheet and Income Statement of companies that lease assets as part of their operations from 1 January 2019 onwards. However, for many Australian companies the transition date is 1 July 2019 and the results of the survey indicate significant additional work is to be performed prior to this date.

Key findings

  • Almost half of Australian respondents indicate their implementation project is on track, while only 28 percent of their global peers take this view.
  • 62 percent of Australian respondents are planning on using a system for the new standards, yet only 37 percent of these respondents have selected their lease accounting software.
  • Overall, just 3 percent of global companies, including 2 percent of Australian respondents, have completed their lease accounting compliance projects.


“This new standard is pervasive; and for many clients its impact will be material. Entities need to be realistic in terms of what is required, plan appropriately and execute effectively in order to manage their potential risks.” 

Andrew King
Partner in KPMG’s CFO Advisory

The next few months will see many Australian companies now focus on interim system solutions, including the development of spreadsheets to support short-term compliance, or outsourcing the process to service providers.

Although additional work is required, the survey results also indicate that Australian companies are more progressed than global respondents in their implementation projects in regards to the collation of their lease inventory (50 percent of Australian companies have completed this process compared to 37 percent of global respondents) and their overall accounting assessment of the impact (33 percent of Australian respondents compared to 23 percent of global respondents). However, the experience of overseas companies with an earlier transition date is that significant challenges continue to be uncovered as their projects progress.

About the research

KPMG surveyed more than 800 companies across the world, of whom over 550 are headquartered in the Americas, nearly 100 in EMEA and almost 150 in ASPAC. Both public and private companies were included, drawn from across all major industries, with 57 percent of them having revenue of US$1 billion or more. Around 41 percent of respondents report under IFRS, 48 percent under US GAAP and 11 percent under other. Four hundred of the companies included in this survey are based in the US, and these were surveyed in May and June of 2018. The remaining 400 companies, based in other parts of the Americas as well as EMEA and ASPAC, were surveyed July through September 2018.

AASB 16 resources

Visit our AASB 16 Leases hub for the latest information on the impacts of the new standard.

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