Market Readiness Three Years after the Publication of ASC 842
Approximately 40% of private companies surveyed are behind schedule or have not started their ASC 842 project – a concerning metric as the first implementation deadlines are quickly approaching. However, 12% indicated that they had already completed the project.
Overall, 55% of private companies are finding the lease accounting implementation to be more complex than anticipated. The top implementation challenge cited by more than 40% of respondents was identifying the population of leases and abstracting the data needed for the accounting calculations. Other top challenges cited included modifying existing business processes, project managing the enterprise-wide work effort, and applying new accounting policies.
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