New Global lease accounting survey examined the key challenges businesses were and may still be facing in implementing the new standards.
The new standards on lease accounting are here. Whether a company reports under IFRS or under US GAAP, the standards became effective January 1, 2019 for calendar year-end companies. But KPMG International's Value of Audit survey of companies around the world reveals that some will not have fully completed their implementation programs by the effective date and so will now be relying on interim solutions to enable compliance workarounds. Some organizations have something of a grace period if they have a non-calendar year-end or are a non-public business entity that applies US GAAP – but nevertheless with systems implementation alone likely to take 4-6 months or longer, many of these companies will also be facing a race against time. The survey presents the latest picture just prior to the effective date, and the variations by region across the world.
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