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IBM Survey: CFOs Hunkering Down for IASB/FASB Regulations

Accounting for lease liabilities could get more complicated.

The U.S. Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have been collaborating on new accounting regulations that decrease the reporting burden for multinational corporations. However, some of the changes could create major headaches for CFOs.

According to a recent survey from IBM, more than 92 percent of surveyed CFOs and real estate senior executives are not yet ready to comply with leased asset reporting rules by adding them as capital assets on their balance sheets.

Additionally, 79 percent of respondents said they would be making "moderate or substantial changes" to their rules for accounting, and 63 percent said they would have to update or switch information management systems in order to meet the new requirements.

George Ahn, vice president of Enterprise Asset Management at IBM, said that as the financial regulations start to impact companies, "most firms are concerned about their readiness to abide by the lease accounting changes."

Ahn added that IBM expects the regulations from IASB and FASB to drive more companies to put a greater focus on managing their leased equipment, buildings and vehicles "as meticulously as they have traditionally managed their overall financial investment portfolio, with an increased focus on asset efficiency."