press conference room, podium

Press releases

Is 2017 the year of lease accounting implementation?

NEW YORK, Dec. 13, 2016—More than one-half (54.7 percent) of respondents to a recent Deloitte poll expect their organizations to increase the amount of time and effort spent on implementing the new Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) lease accounting standards in the coming year.

In some sectors, respondents expect to spend considerably more time and effort on lease accounting implementation. These sectors include: Automotive (77.1 percent); health plans (65.9 percent); health care providers (62.8 percent); industrial products and services (61.7 percent); retail, wholesale and distribution (61.3 percent); and media and entertainment (61 percent).

For the many companies impacted by the new lease accounting standards, the biggest challenge may be in identifying leases themselves. Identifying equipment leases embedded within service arrangements and evaluating so-called secondary use arrangements where an asset is utilized without disrupting its primary use—like ads on the side of a building or cable wires added to utility-owned poles—are areas where many companies are focused.
James Barker, senior consultation partner, National Office Accounting Services, Deloitte & Touche LLP

Lease accounting compliance challenges expected in the coming year include collecting all required lease data in a centralized, electronic inventory (24.7 percent), and implementing multiple new accounting standards, such as revenue recognition or current expected credit loss (CECL), simultaneous to lease accounting (16.3 percent).

Leading the charge in lease accounting implementation for more than half (55.2 percent) of respondents’ organizations is the controllership function. Just 13.8 percent reported that the task was a collaborative effort involving the controllership, information technology, real estate, and treasury professionals.

It makes sense to have the controllership heavily involved in lease accounting implementation, but we’re encouraged to see that some organizations are teaming more broadly on the effort. Any organization’s lease portfolio can impact myriad groups, so leveraging a multidisciplinary taskforce can help more teams realize value from the large operational undertaking of lease accounting implementation.
Sean Torr, managing director, Deloitte Advisory, Deloitte & Touche LLP

For more information on how the controllership can support lease accounting implementation efforts, visit the Deloitte Center for Controllership™.

About the online poll
More than 3,300 professionals participated in the Deloitte Dbriefs webcast, “Lease accounting: Early steps in FASB compliance and centralizing data,” Oct. 24, 2016. Poll respondents represented several sectors including banking and securities (9.8 percent); technology (8.3 percent); travel, hospitality and leisure (8.1 percent); retail and distribution (7.8 percent); and real estate (6.8 percent).

About Deloitte Advisory’s Center for Controllership™
Deloitte Advisory’s Center for Controllership™ provides chief accounting officers, controllers, and their teams with an opportunity to collaborate and gain direct access to resources and research that can help them build world-class controllership capabilities. Center participants are able to leverage Deloitte Advisory’s deep experience, broad capabilities, and valuable insights to better manage the complexities of their roles and transform their organizations. Learn more at

About Deloitte Advisory
Deloitte Advisory helps organizations turn critical and complex business issues into opportunities for growth, resilience, and long-term advantage. Our market-leading teams help our clients manage strategic, financial, operational, technological, and regulatory risk to enhance enterprise value, while our experience in mergers and acquisitions, fraud, litigation, and reorganizations helps clients emerge stronger and more resilient.

About Deloitte Audit
There is no more powerful lens than a Deloitte audit for illuminating the current state of an enterprise. We believe audit is more than an obligation for our audit clients. It’s an opportunity to see further and deeper into their businesses. Audits can make organizations better, enhancing trust and helping a multitrillion-dollar capital markets system function with greater confidence. That’s where a Deloitte audit—independent, innovative, and known for quality—can make a difference.

As used in this document, “Deloitte” means Deloitte LLP and its subsidiaries. Please see for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Media contacts:

Shelley Pfaendler
Public Relations
Deloitte Services LP
+1 212 492 4484

Daniel Mucisko
Public Relations
Deloitte Services LP
+1 732 609 6825

Did you find this useful?