The real estate professional needs to be aware of the accounting rules for real estate, in order to avoid adverse reporting outcomes. This real estate accounting course covers the accounting rules for every type of real estate transaction, which can be used to structure real estate deals appropriately. The real estate accounting class covers accounting for real estate sales, property exchanges, and time-share intervals. Our real estate tax course also reveals the related financial statement presentations and accompanying disclosures. In addition, the real estate taxation course describes accounting related to property rental, and investments in real estate ventures. Use this real estate accounting guide as your go-to reference for discerning the proper accounting treatment for a real estate transaction.
Learning Objectives
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.
Major Topics
Introduction to Accounting
Initial Real Estate Costs
Purchase of Income-Producing Property
Real Estate Sales
Nonmonetary Exchanges
Time-Sharing Activities
Rent Topics
Property Management
Asset Retirement and Environmental Obligations
Real Estate Ventures
Housing Associations
