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EY Survey: Lease Accounting Changes Expected to Cost Millions

 

Companies are expanding their budgets to accommodate the new lease accounting standard, turning to interim solutions, temporary employees and outside consultants, with many of them expecting to spend millions of dollars on the effort, according to a new survey by Ernst & Young. Almost half the companies polled by EY anticipate a cost between $1 million and $5 million to implement the changes for the new leases standard. Both multinational and domestic companies cited a number of factors as the barriers to success in implementing the new standard, including systems complexity, gathering and reconciling fragmented data, data quality and antiquated legacy systems. Click here to read more at Accounting Today.