Real Estate Accounting (CPE Course)

CPE Credit: 9 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $65

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Course Description
The real estate professional needs to be aware of the accounting rules for real estate, in order to avoid adverse reporting outcomes. Real Estate Accounting covers the accounting rules for every type of real estate transaction, which can be used to structure real estate deals appropriately. The course covers the accounting for real estate sales, property exchanges, and time-share intervals. It also reveals the related financial statement presentations and accompanying disclosures. In addition, it describes the accounting related to the rental of property, and investments in real estate ventures. In short, this course is the go-to reference for discerning the proper accounting treatment for a real estate transaction.

Author: Steven Bragg

Course Number: AC1146

Table of Contents

Chapter 1. Introduction to Accounting
Chapter 2. Initial Real Estate Costs
Chapter 3. Purchase of Income-Producing Property
Chapter 4. Real Estate Sales
Chapter 5. Nonmonetary Exchanges
Chapter 6. Time-Sharing Activities
Chapter 7. Rent Topics
Chapter 8. Property Management
Chapter 9. Asset Retirement and Environmental Obligations
Chapter 10. Real Estate Ventures
Chapter 11. Housing Associations

Learning Objectives

  • Recognize the underlying principles of accounting, the nature of the accounting cycle, and the types of organizations that can be used to engage in real estate transactions.

  • Specify the types of project costs, as well as when and how to capitalize interest on a real estate project.

  • Identify the steps involved in accounting for an acquired income-producing property, as well as the process flow for goodwill impairment testing. Also, recognize the alternative treatment of amortizing goodwill, and the circumstances under which it can be used.

  • Specify the steps in the five-step revenue recognition process.

  • Identify the options available for valuing exchanged property, and the use of boot in calculating profits.

  • Identify the characteristics of time-share arrangements, as well as the factors to consider when evaluating the sufficiency of the bad debt allowance.

  • Identify the main characteristics of lease accounting as it pertains to rental arrangements.

  • Recognize the nature of contingent rent agreements, lease incentives, and leasehold improvements, and the accounting for them.

  • Specify the fiduciary role played by a property manager, as well as the accounting issues faced by this person.

  • Specify the criteria for recognizing asset retirement obligations, as well as the rules for calculating these obligations. Also, identify the criteria for recognizing environmental obligations.

  • Identify the calculation requirements for the equity method of accounting, as well as the origin of the costs used in the cost method, and the treatment of investor loans to a venture.

  • Recognize the types of entities that can be classified as common interest realty associations, as well as the accounting for special assessments.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Accounting

Prerequisites: None

Advance Preparation: None

Latest Review Date: September 2024

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

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AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.