About this Course
This course discusses accounting for real estate intended for sale, rental, or investment. The GAAP discussed applies not just to those entities engaged primarily in real estate development activities, but to all entities with productive activities relating to real property, except to the extent the entity is bound by different rules (e.g., a pension fund in the United States that is required to carry its investments at fair value) and excluding property used primarily in the entity's non-real estate operations. This course does not address the specialized industry guidance for common interest realty associations (Topic 972) or real estate investment trusts (Topic 974).
Upon completing this course, you should be able to: Identify the treatment of costs associated with the acquisition, development, construction, rental, and sale of real estate; Determine the proper classification of real estate; Describe what constitutes amenities; Describe how to recognize income on the sale of real estate; and Determine the method of accounting that should be used until a sale of real estate is consummated.