Real estate accounting

Real estate accounting guides

• Real estate accounting: the key IFRS issues4 minute readReal estate accounting explained: investment property, development for sale, off-plan revenue, rental income, service charges, valuations and deferred tax.
• Investment property: fair value or cost3 minute readInvestment property under IAS 40: choosing the fair value or cost model, how each affects profit, property under construction, deferred tax, with an example.
• Property development revenue under IFRS 155 minute readProperty development revenue under IFRS 15: when developers recognise revenue over time or at completion, land, unsold units, financing and commissions.
• Off-plan sales: revenue under IFRS 155 minute readOff-plan sales under IFRS 15: over time or at handover, the right to payment test, the 2018 agenda decision, financing, escrow and cancellations.
• Inventory or investment property: classifying property4 minute readInventory or investment property? How IFRS classifies property by its use: land banks, mixed use, hotels, group lettings, transfers and an example.
• Straight-line rental income for landlords4 minute readStraight-line rental income under IFRS 16: how landlords spread rent-free periods and stepped rents, what is not spread, and how accrued rent meets fair value.
• Lease incentives for landlords4 minute readLease incentives for landlords under IFRS 16: rent-free periods, fit-out contributions and other inducements spread over the lease, with a worked example.
• Service charges: principal or agent4 minute readService charges for landlords: when recharged services are revenue under IFRS 15, principal or agent, property taxes and insurance, budgets and vacant units.
• Property valuations under IFRS 134 minute readProperty valuations under IFRS 13: fair value, income and market approaches, why most are Level 3, highest and best use, yield sensitivity and disclosures.
• REIT accounting: tax, distributions and reporting4 minute readREIT accounting explained: no special standard, how REIT status removes current and deferred tax, distribution rules, units as equity or debt, EPRA and FFO.
• Property transfers between categories4 minute readProperty transfers under IAS 40: when property moves between investment property, inventory and own use, the evidence needed, and how each is measured.
• Real estate joint ventures5 minute readReal estate joint ventures under IFRS 11: joint venture or joint operation, the equity method, selling land into a JV, policy alignment, loans and promotes.
• Deferred tax on investment property4 minute readDeferred tax on investment property under IAS 12: the presumption of recovery through sale, when it is rebutted, corporate wrappers, acquisitions and REITs.

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The standards behind these guides

About these guides

Each guide starts from an accounting issue real estate companies actually face and works through it with numbers from the industry. 13 of 13 planned guides are published; more are added with every batch.