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Questions have arisen with respect to the application of the general principles and specific conclusions set forth in the AICPA Industry Accounting Guide, Accounting for Profit Recognition on Sales of Real Estate, issued in 1973. The Division addressed some of those questions in Statement of Position No. 75-6, issued on December 29, 1975. This Statement presents recommendations as a result of questions concerning the application of the deposit, installment, and cost recovery methods, which are described in paragraphs 34 to 37 of the Guide, in accounting for sales of real estate. The Guide does not specifically address the application of these accounting methods, and diverse methods of application have developed in practice. The Division believes that narrowing the range of alternative practices is desirable.
Real estate business -- United States -- Accounting
Accounting | Taxation
American Institute of Certified Public Accountants. Committee on Accounting, "Application of the deposit, installment, and cost recovery methods in accounting for sales of real estate; Exposure draft (American Institute of Certified Public Accountants), 1977, Aug. 15" (1977). Statements of Position. 379.