Real estate revenue guide
Handbooks | August 2024
Latest edition: Our Q&As on the FASB’s revenue and other income recognition standards in the real estate industry.
KPMG answers frequently asked questions on applying ASC 606 and ASC 610-20 in the real estate industry – including interpretations and examples based on our experience with companies applying the standards.
Key impacts
The ongoing application of the revenue and other income standards continues to present challenges as real estate companies react to the business practices and economic environment in recent years.
Although the challenges to real estate companies have varied widely depending on the nature of their businesses and how they interact with their customers and buyers, most have experienced changes in a number of their estimates and their processes and considerations for evaluating their buyers’ credit and nonperformance risk.
KPMG Handbook, Revenue recognition, illustrates how the revenue standard applies to common transactions, provides examples about common scenarios and explains our thinking on the questions that continue to arise.
This publication provides supplemental technical guidance on key issues for real estate companies, including their interaction with the leases standard. We address some of the common questions about the effects of the standards on sales of real estate and other non-lease revenue.
Report contents
- Scope
- Step 1: Identify the contract
- Step 2: Identify the performance obligations
- Step 3: Determine the transaction price
- Step 4: Allocate the transaction price
- Step 5: Recognize revenue
- Other implementation matters
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Revenue Real Estate
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Resource
Handbook: Revenue recognition
Latest edition: Our in-depth guide to the revenue standard, ASC 606.
Resource
Handbook: Leases
Latest edition: Our in-depth guide to ASC 842 – with Q&As, interpretive guidance and examples.
Leases
Our reporting, guidance and publications relevant to the FASB's new leases standard for lessees and lessors for all industries. KPMG specialists provide an in-depth look at ASC 842 implementation
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