#Japan #Lease Accounting #Invoice

Recent Trends in New Lease Accounting Standards Compliance

The company Invoice Co. has recently published a comprehensive report on the current state of corporate compliance with the new lease accounting standards. The study, which surveyed approximately 330 financial officers, aims to uncover the progress and challenges various enterprises face as they approach the mandatory adaptation deadline of April 2027. This report not only analyzes the current situation but also gathers insights from professionals involved to guide future preparedness and adaptation efforts.

The findings reveal a significant variation in the management practices of lease contract information among different companies. According to the survey, 43.5% of respondents indicated that the information is managed independently by the General Affairs department, while both the accounting systems and manual spreadsheets using Excel accounted for 34.9%. Additionally, 24.7% of companies manage their data in disparate ways across various locations, indicating a lack of uniformity in their approaches. This chaos reveals a gap in ensuring efficient management practices and accurate accounting processes, suggesting that companies must focus on streamlining and standardizing their management methods moving forward.

Furthermore, as per the survey results, 37.1% of the companies have confirmed they are adapting to the Japanese standards, followed closely by 34.4% that are still evaluating their strategies internally. Only 18.3% reported full compliance with IFRS, illustrating that while there are some companies that have advanced in their compliance, a significant percentage remain in diverse stages of decision-making regarding the applicable standards. Alarmingly, over 40% of organizations are still deliberating their course of action.

The report also details that only 28.5% of the participating companies have completed their adaptations, categorizing them as early movers in the compliance process. A sizable 45.7% remain in the preparatory phase, focusing on calculations and research, while 19.9% are still gathering information. A mere 3.2% are yet to begin any preparations. These numbers indicate that a majority of companies have not fully transitioned into rigorous compliance efforts. Thus, aligning organizational structures and refining management processes are essential steps for those still navigating these new requirements.

The report underscores that while some companies have completed their compliance, a segment remains stuck in preliminary information-gathering stages. To that end, readers are encouraged to utilize the insights presented in this report as a resource for enhancing their companies’ compliance strategies with the new lease accounting standards.

For more detailed findings, you can view the report here: New Lease Accounting Standards Survey

Company Overview

Invoice Co., founded in 1992, became a group company of Fujitsu Comprehensive Leasing in October 2018. The company specializes in unified billing services for communication and utility costs, aptly named