Preparing for the new lease accounting standard

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The activities that companies should be considering now fall into three main categories:

Impact analysis

  • Establish cross-functional implementation team
  • Evaluate lease portfolio strategy
  • Identify which contracts are leases or have embedded leases
  • Conduct education sessions and workshops
  • Complete end-to-end process review and gap analysis
  • Consider alternatives for future lease negotiations
  • Consider cross functional impacts (e.g., covenants, tax, compensation plans)
  • Determine impacts on process and controls
  • Evaluate policy and transition alternatives
  • Identify IT gaps and determine technology strategy
  • Formalize budget and roadmap for implementation
  • Develop communications (impacts and plan)

Data assessment and lease analysis

  • Data gathering
  • Collect leases
  • Source identification and mapping
  • Abstraction and aggregation
  • Convert and collect new data elements
  • Reconciliation and quality assessment
  • Quality remediation and enhancement
  • Master data management
  • Reporting & analytics
  • Consideration of lease/buy processes and strategies
  • Change management/training
  • Lease process design & transformation

Systems, process, and controls

Download PwC's recommended approach to preparing for the new lease accounting standard.


Contact us

Henri Leveque

Capital Markets Accounting Advisory Leader , PwC US

Tel: +1 (678) 419 3100

Chad Kokenge

Partner, Deals, PwC US

Tel: +1 (646) 818 7795

Sheri Wyatt

Partner, Accounting Advisory, PwC US

Tel: +1 (312) 298 2425

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