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Firms say Potential Bank Loan Violations are Top of Mind for Clients

A survey of 77 U.S. CPA firms by LeaseCrunch® revealed that 69% of auditors reported clients are concerned about potentially violating bank loan covenants due to new lease reporting standards, with 59% believing that recognizing lease obligations will negatively impact these covenants.

69% of the auditors said that their clients have raised the issue of potentially violating bank loan covenants.

LeaseCrunch®, which makes software for CPA firms, recently released data compiled from surveying 77 United States based CPA firms on the new reporting standards that affect banks in terms of bank loan covenants.

The question surrounds new lease standards. The survey found that 69% of the auditors said that their clients have raised the issue of potentially violating bank loan covenants when the new lease standard impacts their reporting. Additionally, 59% of the CPA auditors think that recognition of a lease obligation will adversely affect loan covenants for clients.