Financial Standards

Nareit attended the EPRA Accounting Summit and met with representatives from the IASB.

Standard requires capitalization of transaction costs of most investment property acquisitions.

NAREIT maintains GAAP income and cash flow statements should be restructured to provide flexibility for companies to report statements under a management’s approach.

Provides guidance for areas where there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.

The framework would cover the display of line items, totals and subtotals on the financial statements.

SEC issues disclosure update and simplification proposal.

NAREIT says proposal lacks “convincing evidence” to suggest it would enhance audit quality.

NAREIT requests FASB consider scoping into the proposed standard sales of investments in real estate joint ventures where substantially all assets in venture are investment properties.

NAREIT believes proposal would be of particular interest to Equity REITs.

Standards reflects NAREIT recommendations.