Exposure Drafts, Comment Letters, and Statements of Position
Files
Download Full Text (694 KB)
Description
Recent trends in the real estate industry have produced dramatic increases in the size of enterprises, the cost of individual projects, and the time required to complete the development of individual projects. Those developments have focused attention on the need for guidance on accounting for costs associated with real estate acquisition, development, and construction. The accounting standards division of the American Institute of Certified Public Accountants has prepared this statement of position in response to that need. The recommendations in this statement apply to accounting for real estate acquisition, development, and construction costs in financial statements that are intended to present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles regardless of the nature of the entity involved, except as indicated in this paragraph. In providing guidance, the division believes that it is desirable to reduce, to the extent practicable, alternative practices in accounting for costs of real estate acquisition, development, and construction. This statement does not apply to transactions covered by the AICPA industry accounting guide, Accounting for Retail Land Sales. That guide applies to "retail lot sales on a volume basis with down payments that are less than those required to evaluate collectibility of casual sales of real estate." AICPA Statement of Position 78-3, Accounting for Costs to Sell and Rent, and Initial Rental Operations of, Real Estate Projects, should be followed in accounting for the costs and operations identified in that statement.
Publication Date
1979
Relational Format
Book
Keywords
Real estate business -- United States -- Accounting; Real estate development -- United States -- Accounting
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Real Estate Accounting Committee, "Proposed statement of position : Accounting for real estate acquisition, development, and construction costs;Accounting for real estate acquisition, development, and construction costs; Exposure draft (American Institute of Certified Public Accountants), 1979, July 23" (1979). Exposure Drafts, Comment Letters, and Statements of Position. 409.
https://egrove.olemiss.edu/aicpa_sop/409
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.