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Statement No. 67
Accounting for Costs and Initial Rental Operations of Real Estate Projects
STATUS
Issue Date: October 1982
Effective Date: For costs of real estate incurred in fiscal years beginning after December 31, 1982
Affects: Amends FAS 32, Appendixes A and B
Affected by: Paragraph 2(b) and footnote 10 amended by FAS 111
Paragraphs 3, 24, and 28 amended by FAS 121
Paragraphs 16 and 25 superseded by FAS 121
Issues Discussed by FASB Emerging Issues Task Force (EITF)
Affects: No EITF Issues
Interpreted by: No EITF Issues
Related Issues: EITF Issue No. 91-10
Abbreviations for Accounting Pronouncements
FAS - FASB Statements
FIN - FASB Interpretations
FTB - FASB Technical Bulletins
APB - APB Opinions
AIN - AICPA Interpretations
ARB - Accounting Research Bulletins
CON - FASB Concepts
EITF - EITF Issues
Q&A - FASB Implementation Guides
SUMMARY
This Statement extracts the specialized accounting principles and practices from AICPA Statements of Position 80-3,
Accounting for Real Estate Acquisition, Development, and Construction Costs, and 78-3,
Accounting for Costs to Sell and Rent, and Initial Rental Operations of, Real Estate Projects, and those in the AICPA Industry Accounting Guide,
Accounting for Retail Land Sales, that address costs of real estate projects. This Statement establishes whether costs associated with acquiring, developing, constructing, selling, and renting real estate projects should be capitalized. Guidance also is provided on the appropriate methods of allocating capitalized costs to individual components of the project.
This Statement also establishes that a rental project changes from nonoperating to operating when it is substantially completed and held available for occupancy, that is, upon completion of tenant improvements but no later than one year from cessation of major construction activities. At that time, costs should no longer be capitalized.
Copyright by Financial Accounting Standards Board. All Rights Reserved. Used by Permission.
©2000 New York State Society
of Certified Public Accountants. Legal Notices.
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