2018 accounting change survey: Summary report€¦ · To find out how companies are coping with the...

2018 accounting change survey

Summary report

www.pwc.com/us/accountingsurvey

PwC | 2018 accounting change survey

Index

2

• About this survey 3

• Combined difficulty 4

• Demographics of respondents 5

Lease accounting 6

• Leased assets 7

• Status 8

• Progress 9

• Team size 10

• Implementation challenges 11

• Systems changes 12

• Systems go-live 13

• Level of effort 14

• Costs 15

Revenue recognition 16

• Status (Public companies) 17

• Status (Non-public companies) 18

• Revenue complexity 19

• Implementation challenges 20

• Costs 21

• Accounting challenges 22

• Systems changes 23

• Number of contracts 24

• Level of effort 25

• Team size 26

Hedge accounting 27

• Year of adoption 28

• Expected benefits 29

PwC contacts 30


About this survey

First it was revenue recognition (ASC 606 & IFRS 15). Then came lease accounting (ASC 842 & IFRS 16), followed by new hedge accounting guidance – just to name a few of the recent new standards. To find out how companies are coping with the unprecedented wave of accounting changes, we surveyed finance executives about their revenue recognition, leasing and hedge accounting transition experiences.

Responses were collected through an open, online survey in late April and early May 2018. More than 600 executives from a wide range of industries participated and responses are summarized here. For additional information, including insights and analysis, visit our accounting change survey web page:

pwc.com/us/accountingsurvey

3

http://www.pwc.com/us/accountingsurvey


How would you rate the combined difficulty for your company in adopting the changes to accounting standards affected over the past four years?

4


Which of the following best describes your company'sprimary industry?

Other demographics of respondents

5

• 82% reported their title as CFO,

controller or finance/accounting director

or manager.

• 69% were from public companies.

• 93% were US GAAP reporters.

• 57% were from companies with

revenue of

$1 billion or more.

Energy &Utilities, 11%

Financial Services,

14%

IndustrialProducts/

Manufacturing, 23%Retail &

Consumer, 11%

Technology, Media, Telecom,

16%

Other, 25%


Lease accounting

6


Approximately, how many assets are leased?

7


Which of the following best describes your company’s status in adopting the new lease accounting standards?

8


How far along is your company in assessing the new lease accounting standards?

9


What is the approximate size of your overall leasing implementation team (internal and external)?

10


For each of the following implementation considerations,please rate the difficulty level for your organization:

11


Do you expect significant system changes to accommodate thenew leasing standard?

12


Do you expect to go live with system changes prior to youreffective date?

13


Which of the following best describes the level of effort required to date in assessing or implementing the new leasing standards?

14


What level of total incremental costs do you expect will be incurred to implement the new leasing standards?

15


Revenue recognition

16


Which of the following best describes your company’s status in adopting the new revenue standards? Public company responses

17

Completing implementation

(non-calendar YE), 19%

Effective date passed,

exploring/ implementing

revenue automation options, 6%

Effective date passed,

remediating issues, 9%

Implementation complete, 66%


Which of the following best describes your company’s status in adopting the new revenue standards?Non-public company responses

18


Please describe the level of complexity/diversity in yourrevenue streams:

19


Please rate the anticipated or determined level of difficulty in implementing the new revenue recognition standard in the following areas:

20


What level of total incremental costs did you incur or do you expect to incur to implement the new revenue standards?

21


Please rate the level of accounting challenges expected or experienced when applying the new revenue standards:

22


Have you made or do you expect to make significant systems changes as a result of implementing the new revenue standards?

23


Approximately how many contracts with customersdo you maintain?

24


Which of the following best describes the level of effort required to date in assessing or implementing the new revenue standard?

25


What is the approximate size of your overall revenue recognition implementation team (internal and external)?

26


Hedge accounting

27


When do you plan to adopt the new hedge accounting standard?

28


Do you expect that changes to the hedge accounting standard will impact your organization in any of the following ways?

29

48%

6%

18%

18%

10%

None of the above

Other

We have revisited our overall approach to financial riskmanagement

We can now apply hedge accounting to additional riskmanagement strategies

We have increased our use of hedging instruments


PwC contacts

To have a deeper conversation about how the new lease accounting standards impact your organization, please contact your PwC representative or one of our accounting change leaders:

30

Shane Foley

Principal, Advanced Risk and Compliance Analytics Solutions

Tel: +1 (646) 471 0516

[email protected]

Brad White

Partner, Accounting Method and Fixed Asset Services Leader

+1 (213) 356 6148

[email protected]

Chad Kokenge

Partner, PwC Deals, Accounting Advisory

Tel: +1 (646) 818-7795

[email protected]

Robert Bishop

Consumer and industrial Products & Services Finance Leader

Tel: + 1 (312) 298 2037

[email protected]

mailto:[email protected]




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subsidiaries or affiliates, and may sometimes refer to the PwC network. Each member firm

is a separate legal entity. Please see www.pwc.com/structure for further details.

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