ASPE – Real estate industry
Real estate entities have unique financial reporting issues under Accounting Standards for Private Enterprise (ASPE). This training activity reviews the Accounting Standards for Private Enterprise (ASPE) applicable to the real estate industry – both developers and those with income producing properties, using industry guidance available from the Real Property Association of Canada (REALpac). Participants will discuss the unique accounting issues encountered by builders, developers, and landlords that have direct or indirect ownership of the real estate.
By the end of this training activity, participants will be able to:
- recognize choices available in accounting for real estate entities and the impact of such choices;
- identify what costs should be capitalized for properties under development;
- recognize revenue on real estate properties for sale;
- recognize revenue from rental properties;
- draft financial statement note disclosures for a real estate company.
- Accounting for real estate development costs
- Accounting for construction of rental properties
- Interest capitalization and accounting for transaction and financing fees
- Accounting for holdbacks
- Revenue recognition on sale of real estate
- Revenue recognition from rental properties
- Impairment of real estate properties
- Contract modifications and claims
- Determining cost of sales for properties sold
This training activity will benefit professionals involved in the preparation of private enterprise financial statements for real estate companies and practitioners who serve private clients in the real estate industry.
Participants should be familiar with the CPA Handbook – Assurance, Part II Accounting Standards for Private Enterprises (ASPE).