Real Estate Accounting

CPE Credits
NASBA Category




Course Description

There are many kinds of real estate transactions, each of which must be accounted for in its own unique way.  Real Estate Accounting describes how to properly account for various types of transactions, such as retail land sales, real estate sales, property exchanges, and the sale of time-share intervals. It also illustrates related financial statement presentations and accompanying disclosures. In addition, this course describes the accounting related to the rental of property and investments in real estate ventures.

Includes answers to many questions regarding Real Estate Accounting:

  • Which pre-acquisition costs can I capitalize?
  • How do I capitalize the cost of interest into a real estate project?
  • Do I recognize goodwill when buying an income-producing property?
  • What are the criteria for using the different income recognition methods?
  • How do I account for an exchange of property?
  • How do I account for the sale of a time-share interval?
  • What types of leases can be offered to a prospective tenant?
  • How do I account for asset retirement obligations?
  • How does an investor account for an interest in a real estate venture?
  • And many more!


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. 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 an auditor with …

Steven M. Bragg, CPA Read More »

Course Specifics

Course ID
Revision Date
June 26, 2020
Number of Pages
Advanced Preparation


Compliance Information

NASBA Provider Number: 103220

Learning Objectives

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

Chapter 1

  • 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.

Chapter 2

  • Specify the types of project costs, as well as when and how to capitalize interest on a real estate project.

Chapter 3

  • 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.

Chapter 4

  • Specify the criteria for determining a buyer’s commitment to pay, and the types of income recognition methods that can be used.

Chapter 5

  • Recognize the nature of a retail land sale, the manner in which income recognition methods can be applied to these sales, and the calculation of the net sales figure associated with a retail land sale.

Chapter 6

  • Identify the options available for valuing exchanged property, and the use of boot in calculating profits.

Chapter 7

  • Identify the characteristics of time-share arrangements, as well as the calculation of sale prices and the criteria for recognizing a time-share sale.

Chapter 8

  • Recognize the nature of contingent rent agreements, lease incentives, and leasehold improvements, and the accounting for them.

Chapter 9

  • 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.

Chapter 10

  • 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.

Chapter 11

  • Recognize the types of entities that can be classified as common interest realty associations, as well as the accounting for special assessments.