The General Editor of the Statistics without Mathematics series at Vor Press is a researcher and data analyst with experience in government, business and the third sector, who is also well-known as an internationally published author of books on statistical testing.

Preface xiii

About the Author xv

List of Abbreviations xvii

PART 1 ACCOUNTING FOR REAL ESTATE TRANSACTIONS--GENERAL 1

Chapter 1: Acquisition, Development, and Construction of Real Estate 3

1.1. Overview 3

1.2. Acquisition, Development, and Construction Costs 4

1.3. Costs Incurred to Sell or Rent a Real Estate Project 20

1.4. Incidental Operations 24

1.5. Accounting for Costs Incurred Subsequent to Project Completion 24

1.6. Purchase of Income-Producing Property 26

1.7. Special Accounting Issues 38

1.8. Financial Statement Presentation and Disclosure 57

1.9. International Financial Reporting Standards 60

1.10. Synopsis of Authoritative Literature (Pre-Codification References) 72

Chapter 2: Nonmonetary Exchanges of Real Estate 83

2.1. Overview 83

2.2. Section 1031 Exchange 84

2.3. Nonmonetary Exchanges Not Governed by Topic 845 (APB Opinion No. 29) 88

2.4. Accounting for Nonmonetary Exchanges 91

2.5. Nonmonetary Exchange of Real Estate Involving Monetary Consideration 94

2.6. Special Accounting Issues 97

2.7. Financial Statement Presentation and Disclosure 99

2.8. International Financial Reporting Standards 100

2.9. Synopsis of Authoritative Literature (Pre-Codification References) 101

Chapter 3: Real Estate Sales 107

3.1. Overview 107

3.2. Applicability of the Real Estate Sale Guidance 110

3.3. Sale and Profit Recognition 112

3.4. Profit Recognition under the Accrual Method 113

3.5. Failure to Meet Criteria for the Application of the Accrual Method 123

3.6. Application of Other Accounting Methods 142

3.7. Special Accounting Issues 158

3.8. Financial Statement Presentation and Disclosure 168

3.9. International Financial Reporting Standards 173

3.10. Synopsis of Authoritative Literature (Pre-Codification References) 182

Chapter 4: Real Estate Leases 191

4.1. Overview 191

4.2. Definition of a Lease 195

4.3. Lease Classification--General 201

4.4. Lease Classification--Leases Involving Real Estate 210

4.5. Accounting for Leases 218

4.6. Special Accounting Issues 222

4.7. Financial Statement Presentation and Disclosure 250

4.8. International Financial Reporting Standards 252

4.9. Synopsis of Authoritative Literature (Pre-Codification References) 258

Chapter 5: Sale-Leaseback of Real Estate 275

5.1. Overview 275

5.2. Accounting for Sale-Leaseback Transactions Involving Real Estate 276

5.3. Specific Accounting Issues 293

5.4. Financial Statement Presentation and Disclosure 303

5.5. International Financial Reporting Standards 303

5.6. Synopsis of Authoritative Literature (Pre-Codification References) 305

PART 2 ACCOUNTING FOR REAL ESTATE INDUSTRY-SPECIFIC TRANSACTIONS 311

Chapter 6: Interests in Real Estate Ventures 313

6.1. Overview 313

6.2. Methods of Accounting for Interests in Real Estate Ventures 314

6.3. Accounting for Transactions with a Real Estate Venture 343

6.4. Special Accounting Issues Related to Consolidation 349

6.5. Special Accounting Issues Related to the Equity Method of Accounting 355

6.6. Financial Statement Presentation and Disclosure 364

6.7. International Financial Reporting Standards 370

6.8. Synopsis of Authoritative Literature (Pre-Codification References) 380

Chapter 7: Time-Sharing Transactions 395

7.1. Overview 395

7.2. Types of Time-Sharing Arrangements 397

7.3. Accounting for the Sale of Time-Sharing Intervals 399

7.4. Special Accounting Issues 411

7.5. Financial Statement Presentation and Disclosure 418

7.6. Synopsis of Authoritative Literature (Pre-Codification References) 419

Chapter 8: Retail Land Sales 421

8.1. Overview 421

8.2. Accounting for Retail Land Sales 422

8.3. Special Accounting Issues 432

8.4. Financial Statement Presentation and Disclosure 434

8.5. Synopsis of Accounting Literature (Pre-Codification References) 434

Glossary 435

Index 455