A huge 40 percent of companies questioned by
accounting firm Deloitte expected new lease accounting standards to
make it harder to obtain financing.
Deloitte questioned 284 American companies
about new lease accounting rules proposed by FASB, the US standard
setter. The rules are similar to the proposed international
reporting standard issued by the IASB.
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A staggering 90 percent of respondents claimed
not to be well prepared for the introduction of the new rules,
while 65 percent were not very confident in the integrity of the
lease data to comply with the new standard.
Respondents included 178 lessees, 81 lessors
and 46 service providers. Of the lesees, 82 had less than 100
leases, 97 had 100 to 999 leases, and 92 had 1,000 or more
leases.
Among those with 1,000 or more leases, 81
percent expected major or significant impacts on the balance sheet,
68 percent on the income statement, and 69 percent on financial
ratios. When asked how their company’s ability to secure financing
would be affected by the impact on their financial ratios, 35
percent predicted that bankers would adjust the language in the
debt covenants.
A total 34 percent of this group anticipated
making big changes to lease data gathering procedures.
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By GlobalDataJust 34 percent of all companies questioned
had a pro forma balance sheet and profit and loss statement, or
expected to have it by mid-year, to determine the impact on their
company.
