Professionals dealing with real estate time sharing transactions will soon get additional reporting guidance by both the AICPA and the Financial Accounting Standards Board.

The AICPA has released a Statement of Position (SOP), "Accounting for Real Estate Time-Sharing Transactions." The proposed SOP would provide guidance on a seller's accounting for real estate time-sharing transactions in financial statements prepared in conformity with generally accepted accounting principles (GAAP).

Simultaneously, the Financial Accounting Standards Board has released an Exposure Draft, "Accounting for Real Estate Time-Sharing Transactions," to update two twenty-year old FASB Statements.

The new FASB Exposure Draft updates FAS 66, "Accounting for Sales of Real Estate" and FAS 67, "Accounting for Costs and Initial Rental Operations of Real Estate Projects." The proposed FASB Statement will exclude time-sharing transactions, which are directly addressed in the Statement of Position.

FAS 66 adopted the specialized profit recognition principles in certain AICPA Industry Accounting Guides and AICPA Statements of Position. Statement 66 provides limited guidance for time-sharing transactions.

Comments on both Exposure Drafts are sought by April 30, 2003.

Download the AICPA Exposure Draft (161 pages)
Accounting for Real Estate Time-Sharing Transactions

Download the FASB Exposure Draft (9 pages)
Accounting for Real Estate Time-Sharing Transactions
-an amendment of FASB Statements No. 66 and 67