• Service: Audit, Financial Statement Audit, Financial Reporting & Accounting Standards, Accounting Advisory Services, International Financial Reporting Standards (IFRS)
  • Industry: Real Estate & Construction
  • Type: Regulatory update
  • Date: 5/03/2012

New on the Horizon

These publications consider the requirements of IASB Exposure Drafts and discuss key elements of the proposed requirements and observations.

New on the Horizon: Revenue recognition for real estate 

In November 2011, the IASB and FASB published a revised joint exposure draft on revenue recognition (the 2011 ED). The proposals issued in June 2010 were revised to address a number of concerns expressed by constituents, including entities in the real estate industry.

This edition of New on the Horizon focuses on the potential impact the revised exposure draft may have on revenue on many common transactions in the real estate industry, affecting both developers and investors.


Key insights

  • Criteria for identifying separate performance obligations have been revised, introducing a clearer test to determine when the land and building elements of a real estate transaction should be accounted for separately.
  • Criteria for recognising revenue over time (similar to current percentage of completion accounting) have been revised with real estate transactions in mind but questions remain regarding the recognition of apartment sales.

International Financial Reporting Standards

KPMG helps organisations adopt IFRS, providing practical support to smooth the transition.

Real Estate & Construction

KPMG’s Real Estate & Construction practice offers audit, tax and advisory services for a diverse client base in the property and construction sectors.