Privately held companies are putting off implementation of the new lease accounting standard, even as the effective date approaches.

There are other reasons why organizations have been putting off adopting the standard. In a separate recent survey by lease accounting software provider LeaseCrunch, 48% of the respondents said they will not adopt early implementation of the new lease standard. The top three problems facing filers were incremental borrowing rates (50%), lease terms (28%), and fair values and effective lives (9%). The survey found that 22% of the respondents have not completed their lease inventory, and over 80% said their clients’ leases had been affected by COVID-19.

Many organizations are just waiting until the last minute. “It’s a new accounting standard, and every time you have a new accounting standard, the bulk of organizations say, ‘Tell me what’s the last day I have to do something about this,’” said LeaseCrunch CEO Ane Ohm.

You can read the full article from Accounting Today here.