Singapore

Details

  • Industry: Infrastructure, Government and Healthcare, Building, Construction and Real Estate
  • Type: Business and industry issue
  • Date: 3/15/2012

New on the Horizon: Revenue recognition for real estate investment & development 

In November 2011, the IASB and the FASB published a revised joint exposure draft on revenue recognition (the 2011 ED). The proposals issued in June 2010 (the 2010 ED) 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 ED features new criteria for recognising 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.