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.

You may like these other stories...

Read more from Larry Perry here and in the Today's World of Audits archive.Accounting PrinciplesAccounts Payable and Accrued Expenses: The AICPA's Financial Reporting Framework for Small- and Medium-Sized Entities is...
BKD LLP adds Illinois accounting firm Wolf & Co.Springfield, Missouri-based CPA and advisory firm BKD LLP and Chicago-based accounting firm Wolf & Co. have agreed to merge, the firms announced on Monday. Wolf will...
Ernst & Young fiscal-year revenue rises 6% to $27.4 billionMichael Rapoport of the Wall Street Journal reported late Thursday that Ernst & Young's (EY) global revenue was $27.4 billion in its latest fiscal year,...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.