August 1999

Issues Interpretation on Real Estate Sales Accounting

The Financial Accounting Standards Board recently published an interpretation of Statement 66 on real estate sales.

"This interpretation clarifies that the phrase all real estate sales includes sales of real estate with property improvements or integral equipment that cannot be removed and used separately from the real estate without incurring significant costs," said Noreen McPartland, FASB practice fellow managing this issue. "For example, office buildings, manufacturing facilities, power plants, and refineries are included in this description."