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Proposed Statement Of Position : Accounting For Investors' Interests In Unconsolidated Real Estate Investments;Accounting For Investors' Interests In Unconsolidated Real Estate Investments; Exposure Draft (American Institute Of Certified Public Accountants), 2000, Nov. 21, American Institute Of Certified Public Accountants. Accounting Standards Executive Committee
Proposed Statement Of Position : Accounting For Investors' Interests In Unconsolidated Real Estate Investments;Accounting For Investors' Interests In Unconsolidated Real Estate Investments; Exposure Draft (American Institute Of Certified Public Accountants), 2000, Nov. 21, American Institute Of Certified Public Accountants. Accounting Standards Executive Committee
Statements of Position
This proposed Statement of Position (SOP) provides guidance on accounting for investors' interests in unconsolidated real estate investments. It provides guidance on when and how the equity method of accounting should be applied to such investments. It is intended to supersede SOP 78-9, Accounting for Investments in Real Estate Ventures. This proposed SOP would require the following: 1. An investor holding an equity investment (including nonvoting common stock or nonredeemable preferred stock) in an investee should follow the equity method of accounting for that investee when the investor has the ability to exercise significant influence over the investee, unless the …