This book aims to clarify the different accounting treatment of investment property assets under HGB and IFRS and to indicate the impact of the fair value measurement. In the second chapter of this book, the fundamentals of financial reporting under IFRS and the objectives of financial statements according to international accounting standards are described. The third chapter, "Accounting for property assets under IFRS" is dedicated to the accounting for property in accordance with IFRS. The classification of property and the resulting recognition and measurement requirements for property assets under IFRS are specified in this chapter and form the basis for the further understanding of the following chapters. Chapter four "Accounting for investment property under IFRS" builds up on the classification of an investment property, as discussed in chapter three and examines in detail the accounting treatment of investment property under IFRS. Besides, chapter four gives an overview of national and international valuation methods and illustrates the application of these methods at the initial and subsequent measurement of investment property. The determination of the fair value of investment property is focused and shown in detail in this chapter, therefore different valuation methods, e.g. the discounted cash flow method are prescribed and illustrated with examples. Chapter five introduces into the accounting system of the HGB and describes the objectives and fundamentals of accounting under HGB. In the sixth chapter "Accounting for investment property under HGB," the accounting for investment property under HGB is described. Furthermore, this chapter puts the recognition and the measurement requirements of investment property under HGB in comparison to the treatment under IFRS. Chapter 7 "Conclusion and critical appraisal" summarizes the main results of this book and makes a critical appraisal of the fair value determination.

Wissenschaftlicher Aufsatz aus dem Jahr 2011 im Fachbereich Jura - Zivilrecht / Handelsrecht, Gesellschaftsrecht, Kartellrecht, Wirtschaftsrecht, , Sprache: Deutsch, Abstract: Leasing is more and more understood as a modern form of financing of various assets, both in the commercial and the private sector. Leases have now become an integral part of economic life. With their multiple creative possibilities and variations, leases are an equitable alternative to buying and renting for companies. The diversity of different forms of leasing, and the fact that there is no uniform lease contract as a reference, results in lease accounting being one of the most difficult areas of accounting under almost all jurisdictions. [1] This diversity leads to an accounting system for leasing business with different possibilities to allocate positions in the P & L and balance sheet. Due to the lack of specific rules, leasing accounting is mostly based on general accounting principles. [2] In Germany, relevant tax decrees have impact on the local accounting. Leases are, in principle, not fixed on legal contract types, and this allows temporary grant of use and utilization of liquidity-friendly financing alternatives in the balance-sheet. Since most major accounting systems presuppose exclusion of pending transactions from the balance sheet, [3] companies used contracts for grant of use, such as lease, deliberately to influence the accounting. For example, sale and leaseback transactions are used to reduce the balance-sheet debt, though the physical property mapping has not changed. [4] The current lease accounting under IFRS 17 of the IASB is to be understood as a reaction to the existing situation in the various accounting systems. The aim of the standard setter was to capture the major part of the grant of use in the balance sheet. All postings, which change the asset allocation similar to an investment, should also be accounted as such. [5] The concept of economic ownership divides any grant of use in leasing into two classes. The finance leases which, simply put, means all long-term and investment-like grants of use, and operating leases, which are any other grants of use. This was still not sufficient for IASB members. Therefore chaired by Warren McGregor, the IASB issued a joint project with the U.S. Federal Accounting Standards Board (FASB), and since 2006, the lease accounting is on the agenda as an active reform project. Basis for reform efforts was the socalled McGregor paper of 1996. [6] [...]

The Real Estate industry has remained one of the most vibrant all over the world and it will remain so for as long as human beings keep multiplying on earth. Despite a few occasional hiccups, this industry has a way of adjusting itself and bouncing back with renewed vigour. However, despite its vibrancy, we have observed that one area that does not seem to experience this vibrancy is accounting. This is based on our field experience implementing software solutions for Real Estate over the past ten years. Real Estate accounting demands holistic compliance with all the relevant provisions of the International Financial Reporting Standards (IFRS). The core Standards applicable to Real Estate include IAS 40 (Investment Property), IAS 16 (Property, Plant, and Equipment), IAS 2 (Inventory), IFRS 16 (Leases-formerly IAS 17), IFRS 15 (Revenue from Contracts with Customers-which merges what was formerly Revenue (IAS 18) with The Construction Contract (IAS 11) and all the previous Interpretations (IFRICs) on Revenue. Some of the parameters that determine the appropriate Standards and policies to apply in any given situation are: Ownership of the property, and whether it is an investment property or owner-occupied. Whether the property is meant for sale or lease. Whether the property is meant for Operating or Finance Lease. Apart from accounting for Investment Properties meant for sale or lease, Real Estate entities that are also engaged in the construction of Real Estate projects must comply with IFRS 15 in accounting for these projects-from Work-in-Progress to completion. Real Estate accounting is so onerous that only a handful of companies can meet the disclosure requirements of the IFRS. This book is an effort to collate all the Standards and Interpretations that apply to real estate entities in one volume and present them in a coherent way that aligns with the operational workflow of real estate transactions. The book is a response to our observations while implementing custom information management solutions for real estate companies over the past ten years. We have noticed the absence of a comprehensive guide or manual that provides holistic treatment for real estate accounting and bookkeeping. This book is meant to fill that gap. We have not invented any new rule or method. All we have done is to provide a clear, simple, and practical guide on how to account for real estate transactions in accordance with the provisions of the International Financial Reporting Standards (IFRS). This book is not about the administrative and legal issues involved in Real Estate accounting and finance. Our goal is to provide computational guidance that can lead to the design and implementation of effective and reliable financial information management systems for the Real Estate sector. The last chapter of this book focuses on financial calculations relevant to Real Estate-something many people find intimidating. We have simplified these calculations by providing detailed explanations and solved examples to aid practical understanding for both professionals and non-professionals. The list of calculations included in this book are as follows: Future Value (FV), Sinking Fund Factor (SFF) and Sinking Fund Schedule, Present Value (PV), Annuity, Discounted Cash Flow (DCF), and Internal Rate of Returns (IRR). We hope this book will add tremendous value to your skill and expertise as a player in the Real Estate sector.

Revised and updated. The influence of International Financial Reporting Standards (IFRS) on accounting across the world is stronger than ever. Most importantly, this stems from the mandatory adoption of IFRSs in many parts of the world, including Europe, Canada, Australia, Brazil and, with some relatively small exceptions, China. Additionally, foreign registrants in the US are also permitted to use IFRS by the SEC. The impact of IFRSs also extends to accounting developments as the IASB and the FASB work closely together to formulate new standards such as those recently issued on leasing and revenue recognition. It is clear that investors, analysts and valuers need to understand financial statements produced under IFRS to feed in to their valuations and broader investment decisions. Written by practitioners for practitioners, the book addresses valuation from the viewpoint of the analyst, the investor and the corporate acquirer. It starts with valuation theory: what is to be discounted and at what discount rate? It explains the connection between standard methodologies based on free cash flow and on return on capital. And it emphasizes that, whichever method is used, accurate interpretation of accounting information is critical to the production of sensible valuations. The authors argue that forecasts of cash flows imply views on profits and balance sheets, and that non-cash items contain useful information about future cash flows - so profits matter. The book addresses the implications for analysis, modelling and valuation of key aspects of IFRS, all updated for recent developments, including: - Pensions - Stock options - Derivatives - Provisions - Leases - Revenue recognition - Foreign currency The text also sets out the key differences between IFRS and US GAAP treatments of these issues, in addition to their implications for analysis. A detailed case study is used to provide a step-by-step valuation of an industrial company using both free cash flow and economic profit methodologies. The authors then address a range of common valuation problems, including cyclical or immature companies, as well as the specialist accounting and modelling knowledge required for regulated utilities, resource extraction companies, banks, insurance companies, real estate companies and technology companies. Accounting for mergers and disposals is first explained and then illustrated with a detailed potential acquisition.

Accounting for Real Estate Transactions, Second Edition is an up-to-date, comprehensive reference guide, specifically written to help professionals understand and apply the accounting rules relating to real estate transactions. This book provides financial professionals with a powerful tool to evaluate the accounting consequences of specific deals, enabling them to structure transactions with the accounting consequences in mind, and to account for them in accordance with US GAAP. Accountants and auditors are provided with major concepts, clear and concise explanations of real estate accounting rules, detailed applications of US GAAP, flowcharts, and exhaustive cross-references of the authoritative literature.