Jul 07, 2016
From the Financial Reporting Network
The new revenue recognition and leasing standards pose operational and financial challenges for many companies. Since the implementation efforts for both sets of rules overlap, many companies are currently tackling how to best implement both standards with the highest level of efficiency and the least amount of disruption.
KPMG recently surveyed over 140 companies – more than three-quarters of which are public – representing a wide range of industries to gauge where they stand in the compliance process.
- Seventy-one percent of respondents are still assessing the impact of the revenue recognition rules, and only 7 percent have begun to implement the rules. Why? They are challenged by competing internal business priorities, human resource constraints and financial limitations.
- Lease implementation is also lagging, with few companies having conducted an inventory of their leases. Having adequate IT systems in place was recognized as the most significant challenge.
Companies should act quickly to make sure that they are on track to meet their implementation deadlines. Download the report to learn what steps to take in the near term.