In a previous article, I discussed some recent regulatory changes related to troubled debt restructurings. Continuing on the theme of regulatory changes, I would like to focus on another potential change and how that might impact real estate investors. The Financial Accounting Standards Board has released a new exposure draft on investment property entities, with one goal being to continue to promote transparency.
Periodically, the FASB releases new guidance, and does this through a process where they first release their proposed guidance in the form of an “exposure draft.” After releasing the exposure draft, the board obtains and considers feedback from many firms and then potentially adopt some version of what it originally proposed. In October, the FASB released its expected investment property entity exposure draft. This proposal would change the way many entities that invest in real estate account for their investments, potentially creating additional data gathering efforts and requiring them to implement significant process changes.
Read more...FASB Takes New Look at Investment Property Entities via GlobeSt.com