AICPA Issues Statement on Accounting for Real Estate Time-Sharing Transactions
The Accounting Standards Executive Committee (AcSEC) of the American Institute of Certified Public Accountants has issued a Statement of Position (SOP) 04-2, Accounting for Real Estate Time-Sharing Transactions.
AcSEC issued the SOP to address diversity in practice caused by a lack of guidance specific to real estate time-sharing transactions. Areas of diversity in practice have included accounting for uncollectibles, recovery or repossession of time-sharing intervals, selling and marketing costs, operations during holding periods, developer subsidies to interval owners associations, and upgrade and reload transactions. The SOP is effective for financial statements issued for fiscal years beginning after June 15, 2005, with earlier application encouraged.
Concurrently, the Financial Accounting Standards Board has issued Statement of Financial Accounting Standards No. 152, Accounting for Real Estate Time-Sharing Transactions – an amendment of FASB Statements Nos. 66 and 67. That Statement includes amendments to FASB pronouncements that are being made in conjunction with issuance of the SOP.
Copies of the SOP (product no. 014942) are available at the Accounting and Auditing Literature section of www.cpa2biz.com/store.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.