Real Estate Accounting

Upon successful completion of this course, participants will be able to:

• Recognize the underlying principles of accounting, the nature of the accounting cycle, and the types of organizations that can be used to engage in real estate transactions.
• Specify the types of project costs, as well as when and how to capitalize interest on a real estate project.
• Identify the steps involved in accounting for an acquired income-producing property, as well as the process flow for goodwill impairment testing. Also, recognize the alternative treatment of amortizing goodwill, and the circumstances under which it can be used.
• Specify the steps in the five-step revenue recognition process.
• Identify the options available for valuing exchanged property, and the use of boot in calculating profits.
• Identify the characteristics of time-share arrangements, as well as the factors to consider when evaluating the sufficiency of the bad debt allowance.
• Identify the main characteristics of lease accounting as it pertains to rental arrangements.
• Recognize the nature of contingent rent agreements, lease incentives, and leasehold improvements, and the accounting for them.
• Specify the fiduciary role played by a property manager, as well as the accounting issues faced by this person.
• Specify the criteria for recognizing asset retirement obligations, as well as the rules for calculating these obligations. Also, identify the criteria for recognizing environmental obligations.
• Identify the calculation requirements for the equity method of accounting, as well as the origin of the costs used in the cost method, and the treatment of investor loans to a venture.
• Recognize the types of entities that can be classified as common interest realty associations, as well as the accounting for special assessments.