Many global cos. unprepared for lease accounting changes.

• Position: ACCOUNTING

Research from Grant Thornton LLP's International Business Report reveals that more than half of businesses are inadequately prepared for one of the more meaningful global accounting changes of the past decade--moving all but short-term leases onto the balance sheet.

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According to a survey of 2,800 businesses globally, which was completed in early September, a majority of those questioned were unaware of the changes, or had an incomplete understanding of the new guidelines. Of those aware of the changes, 33 percent said they believed they would increase cost and complexity, but only 15 percent thought it would increase transparency.

Additionally, 12 percent of businesses indicated the changes would alter the way they structure leases in the future.

Respondents from the United States and Mexico--at 69 and 68 percent, respectively--were most knowledgeable of the new lease rules, the research found. China, at 5 percent, was the lowest.

"There is no question that a global review of lease accounting is long overdue...