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Statement of Position (SOP) 92-3, Accounting for Foreclosed Assets, deals with the measurement of foreclosed assets after foreclosure. This proposed SOP provides guidance on accounting for the results of operations of foreclosed assets held for sale. It applies to all reporting entities except those that account for assets at fair value. It applies to all assets obtained through foreclosure that are considered held for sale, except for inventories, marketable equity securities, and real estate previously owned by the lender and accounted for under FASB Statement No. 67, Accounting for Costs and Initial Rental Operations of Real Estate Projects. It does not apply to in-substance-foreclosed assets. This proposed SOP recommends the following: 1. Depreciation expense should be recognized on depreciable foreclosed assets held for sale commencing no later than one year after foreclosure. 2. The net of revenues and expenses related to operating or holding foreclosed assets held for sale should be credited or charged to income as a gain or loss on holding the assets.
Foreclosure -- United States -- Accounting
Accounting | Taxation
American Institute of Certified Public Accountants. Accounting Standards Executive Committee, "Proposed statement of position : accounting for the results of operations of foreclosed assets held for sale;Accounting for the results of operations of foreclosed assets held for sale" (1992). Statements of Position. 575.