Real Estate Operations: Perspective and Issues

FAS 67, Real Estate: Accounting for Costs and Initial Rental Operations of Real Estate Projects, specifies the accounting for various costs in acquiring and developing real estate projects. It does not apply to

  1. Real estate developed by an entity for its own use rather than for sale or rental

  2. Initial direct costs of leases (discussed in Chapter 16)

  3. Costs directly related to manufacturing, merchandising or service activities rather than real estate activities

  4. Rental operations in which the predominant rental period is less than a month

FAS 67 does address the accounting for costs of real estate whether rented or sold.

Table . 10-1: Sources of GAAP
FASEITFSOPFSP
67, 144, 15285‐27, 95‐604‐2144‐1

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