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  • Industry: Building, Construction & Real Estate
  • Date: 3/8/2012

Revenue recognition for real estate investment and development 

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

The revised proposals will have a direct impact on many common transactions in the real estate industry, affecting both developers and investors. Notably, the 2011 Edition features new criteria for recognizing revenue over time and includes an example illustrating the application of those criteria to sales of residential real estate. However, a key concern remains as to whether the revised proposals are clear enough to be applied consistently across the industry.


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