According to a June 2019 Deloitte poll, few professionals in U.S. government entities feel prepared to comply (11.4% of federal agency employees and 12.4% of state or local government or higher education institution employees) with the Federal Accounting Standards Advisory Board’s (FASAB) and Governmental Accounting Standards Board’s (GASB) respective lease accounting standards.

1. New lease accounting standards:
Lessons learned from public
companies
Analysis of findings from professionals in federal, state
or local government or higher education organizations
Deloitte poll results from June 20, 2019

2. New lease accounting standards: Lessons learned from public companiesCopyright © 2019 Deloitte Development LLC. All rights reserved. 2
Methodology
Professionals working for federal government,
state or local government or higher education
organizations were polled online during a
Deloitte Dbriefs webcast, titled “New lease
accounting standards: Lessons learned from
public companies” and involving the Deloitte
Center for Controllership, on June 20, 2019.
Answer rates differed by question.
In some instances, immaterial amounts (e.g., +/-
0.1%) have been added to or removed from the “Don’t
know/not applicable” answer responses to bring results
to 100% total for each question.
230+
2

3. New lease accounting standards: Lessons learned from public companiesCopyright © 2019 Deloitte Development LLC. All rights reserved. 3
How prepared is your organization to comply with the new lease
accounting standard?
Votes received: 289 (79 federal; 210 state or local governments or higher education)
Prepared = Respondents selecting “extremely prepared” or “very prepared” answer options.
Unprepared = Respondents selecting “not too prepared” or “not at all prepared” answer options.
Don’t Know / Not Applicable = 25.3% federal; 24.3% state or local governments or higher education
Federal agency employees State or local government; or,
higher education employees
11.4%
49.4%
13.9%
12.4%
35.2%
28.1%
Prepared
Somewhat prepared
Unprepared

4. New lease accounting standards: Lessons learned from public companiesCopyright © 2019 Deloitte Development LLC. All rights reserved. 4
How easy or difficult do you think it will be for your company to
implement the new lease accounting standard?
Don’t Know = 22.6% federal; 18.6% state or local governments or higher education
Votes received: 329 (98 federal; 231 state or local governments or higher education)
2.0%
21.4%
41.8%
12.2%
6.5%
22.9%
40.7%
11.3%
Easy Neither difficult nor easy Difficult Not applicable-
implementation already
complete
Federal agency employees State or local government; or,
higher education employees

5. New lease accounting standards: Lessons learned from public companiesCopyright © 2019 Deloitte Development LLC. All rights reserved. 5
Which do you think will pose the largest implementation
challenge for your company’s lease accounting standard
compliance efforts in the next 12 months?
Don’t Know / Not Applicable = 28.9% federal; 21.5% state or local governments or higher education
Votes received: 320 (97 federal; 223 state or local governments or higher education)
24.7%
22.7%
17.5%
5.2%
1.0%
39.9%
14.8%
7.6%
7.2%
9.0%
Federal agency employees State or local government; or,
higher education employees
Identifying all leases and gathering necessary data
Managing multiple new accounting standards (e.g.,
revenue recognition and/or current expected credit
loss) in addition to lease accounting
Managing necessary changes to business processes,
controls, and employee/stakeholder communications
Difficulty in finding and implementing an appropriate IT
solution
Figuring out where to start the implementation process

6. New lease accounting standards: Lessons learned from public companiesCopyright © 2019 Deloitte Development LLC. All rights reserved. 6
How many real estate and/or equipment leased assets does your
organization’s portfolio contain?
Votes received: 234 (51 federal; 183 state or local governments or higher education)
Don’t Know / Not Applicable = 25.4% federal; 36.1% state or local governments or higher education
25.5%
11.8% 11.8% 13.7% 11.8%
30.6%
9.3% 11.5%
3.8%
8.7%
Less than 100 100-300 301-1,000 1,001-2,500 More than
2,500
Federal agency employees State or local government; or,
higher education employees

7. New lease accounting standards: Lessons learned from public companiesCopyright © 2019 Deloitte Development LLC. All rights reserved. 7
Media contact
Shelley Pfaendler
Public Relations
Deloitte Services LP
spfaendler@deloitte.com
Cheznee Johnson
Public Relations
Deloitte Services LP
chezjohnson@deloitte.com
Full press release available on
Deloitte.com
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Copyright © 2019 Deloitte Development LLC. All rights reserved.
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