In particular, modifying business processes, collecting the data and deploying new software have proven the most troublesome aspects of preparing for the new standard, the report found.

Approximately, 70% of the 250 companies surveyed have assigned a formal project manager to oversee preparation for its implementation. However, fewer than 30% have taken the next step of assigning a formal budget for the project. More concerning, though, was the 25% of companies which reported that the project has not started yet.

IFRS 16 changes the way public companies will report leases in their quarterly and annual financial statements. Many real estate and equipment leases, previously only disclosed in the footnotes of investor filings will now be brought onto corporate balance sheets.

The IASB estimates that over $2.2 trillion (£1.7 trillion) of assets and liabilities will transfer onto corporate balance sheets in the coming years. The implementation deadlines for the new standards start in 2019. IFRS 16 has a transition option under which companies do not have to restate comparative information, and the IASB expects the vast majority to take this option.

‘We have witnessed a significant surge in new business over past six months as more and more Fortune 1000 organisations are moving into the software selection and data collection phases of lease accounting projects,’ said Michael Keeler, CEO of LeaseAccelerator. ‘Although most companies report being on-schedule, we would encourage project leaders to adopt best practices in order to mitigate the risk of delays. Appointing an executive sponsor, building a cross-functional project team and scaling resources for data collection will be critical success factors for on-time implementations.’

LeaseAccelerator's Lease Accounting Progress Report is available here.