New Global lease accounting survey examined the key challenges businesses were and may still be facing in implementing the new standards.
The new standard on leases, International Financial Reporting Standard (IFRS) 16, has been effective since 1 January 2019. Calendar year-end companies are expected to comply by December 2019. The new standard is likely to have significant impact for all companies as lessees. The new requirements will impact not only the accounting and financial reporting by companies, but also their systems, processes, internal controls, procurement, taxes, and operational functions.
In September 2018, KPMG International conducted a global survey to assess where companies are on their implementation journey and key challenges faced during implementation. KPMG International’s latest Global Lease Accounting Survey report, Lease Accounting is here: Are you ready?, presents the latest picture prior to the effective date and the variations by region across the world. Many companies surveyed still have work to do even after the effective date of the standard. Those companies that did not fully complete implementation by the effective date will have to rely on interim solutions, while some that have a little bit of a grace period left are still facing a race against time.
We hope you find the report provides valuable insights that can help you benchmark against your peers.