Real Estate Accounting ON DEMAND

Overview

This is an essential course for professionals in the real estate sector, offering a detailed guide to the accounting rules for various real estate transactions. This course is designed to equip participants with the knowledge to structure real estate deals appropriately and ensure accurate financial reporting. Participants will benefit from a comprehensive overview of the underlying principles of real estate accounting and the types of organizations involved in these transactions. The course thoroughly explains the types of project costs and the intricacies of capitalizing interest on real estate projects. Additionally, it covers the accounting processes for acquired income-producing properties, goodwill impairment testing, and alternative treatments of amortizing goodwill. Crucially, the course offers insights into the five-step revenue recognition process, valuation options for exchanged property, and the handling of time-share arrangements. It also provides a deep dive into lease accounting, including contingent rent agreements, lease incentives, and leasehold improvements, and addresses the accounting challenges faced by property managers. By completing this course, real estate professionals will be well-equipped to handle the accounting aspects of their transactions with confidence and precision, ensuring compliance and enhancing their professional competence.

Highlights

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.

Prerequisites

None.

Designed For

CPAs, CFPs, financial advisers, landlords, property managers, real estate professionals.

Objectives

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. 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.

Preparation

None.

Notice

None.