Norwalk, Conn. (Feb. 24, 2003) -- The Financial Accounting Standards Board has proposed amendments to Statements 66 and 67 of a Statement of Position entitled Accounting for Real Estate Time-Sharing Transactions, which would effectively exclude these transactions from the scope of those Statements.The Accounting Standards Executive Committee and the American Institute of CPAs composed the SOP. The proposed amendments would be effective for financial statements issued for fiscal years beginning after June 15, 2004. The comment periods conclude on April 30, 2003.
FASB issued Statement 66 in 1982 and 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.
Statement 67, also issued in 1982, establishes whether costs associated with acquiring, developing, constructing, selling, and renting real estate projects should be capitalized. It also establishes that, upon completion of tenant improvements, a rental project changes from non-operating to operating when it is substantially completed and held available for occupancy. At that time, costs should no longer be capitalized.
--Electronic Accountant Newswire staff
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access