Handbook: Real estate revenue

The ongoing application of 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 as well as their processes and considerations for evaluating their buyers’ credit and nonperformance risk.

This handbook 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. It also 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.