Real Estate Accounting

9 Credits: Accounting


Webcasts are available for viewing Monday – Saturday, 8am – 8pm ET.
Without FlexCast, you must start with enough time to finish. (1 Hr/Credit)

 Secure Transaction

Real Estate Accounting

Course Level
CPE Credits

9 Credits: Accounting

Course Description

“Real Estate Accounting” is an essential course for professionals in the real estate sector, offering a detailed guide to the accounting rules for various real estate transactions. This course is designed to equip participants with the knowledge to structure real estate deals appropriately and ensure accurate financial reporting.

Participants will benefit from a comprehensive overview of the underlying principles of real estate accounting and the types of organizations involved in these transactions. The course thoroughly explains the types of project costs and the intricacies of capitalizing interest on real estate projects. Additionally, it covers the accounting processes for acquired income-producing properties, goodwill impairment testing, and alternative treatments of amortizing goodwill. Crucially, the course offers insights into the five-step revenue recognition process, valuation options for exchanged property, and the handling of time-share arrangements. It also provides a deep dive into lease accounting, including contingent rent agreements, lease incentives, and leasehold improvements, and addresses the accounting challenges faced by property managers. By completing this course, real estate professionals will be well-equipped to handle the accounting aspects of their transactions with confidence and precision, ensuring compliance and enhancing their professional competence.

Show More
Show Less

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • 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.
Show More
Show Less

Course Specifics

Course ID
Revision Date
May 26, 2023

There are no prerequisites.

Advanced Preparation


Number of Pages

Compliance Information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

CFP Notice: Not all courses that qualify for CFP® credit are registered by Western CPE. If a course does not have a CFP registration number in the compliance section, the continuing education will need to be individually reported with the CFP Board. For more information on the reporting process, required documentation, processing fee, etc., contact the CFP Board. CFP Professionals must take each course in it’s entirety, the CFP Board DOES NOT accept partial credits for courses.

Meet The Experts

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 300 business books and courses. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast. Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and …