More than 85 percent of companies operating leases not on balance sheets
Avison Young’s results are part of a two-year study of more than 100 companies that fall in the small to mid-cap range. With the first deadline for the new standards nearly two years away, most companies are lagging far behind.
“Roughly 77 percent of companies we surveyed have said that their auditors are looking into the new guidelines or that their accountants are evaluating the impact of the new standards,” said
Research from the study also revealed that 85 percent of operating leases are not currently on companies’ balance sheets, which equates to over
“Lease classification, rental rate structure, options and concessions are additional factors that may significantly increase lease values as well, if companies do not thoroughly review what actions may be taken in advance of the effective date,” said Moynihan.
“All that was needed before the new standard was an Excel spreadsheet, but going forward, companies will need a more detailed analysis when calculating a company’s lease obligation,” said Moynihan. “The analysis