Real estate revenue guide
Handbooks | April 2023
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 implementation and ongoing application of the revenue and other income standards continues to present challenges as real estate companies react to the unprecedented business practices and economic environment arising 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.
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
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Revenue Real Estate
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