Real estate entities have unique financial reporting issues under Accounting Standards for Private Enterprise (ASPE). This course uses exercises and examples to illustrate these issues to provide practical advice for those involved.

This course reviews the ASPE standards relevant to the real estate industry, as applicable to both developers and those with income-producing properties, using industry guidance available from the Real Property Association of Canada (REALpac). Additionally, participants will discuss the unique accounting issues encountered by builders, developers, and landlords that have direct or indirect ownership in real estate.

Topics Include:

• Accounting for real estate development costs
• Accounting for construction of rental properties
• Interest capitalization and accounting for transaction and financing fees
• Accounting for holdbacks
• Revenue recognition on sale of real estate
• Revenue recognition from rental properties
• Impairment of real estate properties
• Contract modifications and claims
• Determination of cost of sales for properties sold

NOTE: This course description has been revised and reflects updates for 2024. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants should be able to:

• Recognize choices available in accounting for real estate entities and the impact of such choices.
• Identify what costs should be capitalized for properties under development.
• Recognize revenue on real estate properties for sale.
• Recognize revenue from rental properties.
• Draft financial statement note disclosures for a real estate company.