Condos and HOAs: GAAP, GAAS, & SSARS Issues

Author: Pat Patterson

This course explains most of the varied and unusual details of accounting and auditing for CIRAs (Condominium Associations and Homeowners’ Associations) including the Generally Accepted Accounting Principles (GAAP), Generally Accepted Auditing Standards (GAAS), and the Statements on Standards for Accounting and Review Standards (SSARS) that apply. There are specific Topics in the Financial Accounting Standards Board (FASB) Codification that deal with the Common Interest Realty Association industry and Condominium Associations specifically. The CIRA industry also has auditing standards that relate often to specific state laws and rules.

Publication Date: February 2025

Designed For
CPAs, Property Managers, Investors, and other accounting professionals working in the accounting and audit areas of Condos. The tasks include audits, reviews of financial statements of the associations as well as Compilations, and Preparation engagements. The AICPA’s Code of Professional Conduct is also important to understand as it relates to Independence, documentation, and form and content of financial statements.

Topics Covered

• Overview of CIRAs
• GAAP Issues and CIRAs
• Reserve Consideration for CIRAs
• GAAS Issues for CIRAs
• SSARS Issues for CIRAs
• New laws in states with condos

Learning Objectives

• Identify the types of engagements available to a Common Interest Realty Association (CIRA), such as audits, reviews, compilations, and preparation engagements
• Describe the mechanics of providing financial statements to a CIRA depending on the type of CIRA and the level of attention needed
• Recognize the procedures that CIRAs may take concerning revenue, capitalization issues, and deductions for the association
• Identify when an owner/member of an association may be affected by the CIRA's accounting implications especially around repairs and replacements
• Identify and explain the capitalization policy of CIRAs
• Identify a form of ownership in which a corporation, rather than the tenant-shareholders, have title to all real estate within the development such as a COOP
• Recognize which type of CIRA is also referred to as an "umbrella association"
• Describe the steps in the revenue recognition model with respect to CIRAs
• Identify correct statements regarding condo specific revenue situations
• Recognize the area of a disconnect between a compilation and a preparation engagement
• Identify AR-C Sections relating general principles for engagements performed in accordance with SSARS
• Identify the first step in the revenue recognition model
• Recognize which SASs address the auditor's responsibility to identify and assess the risks of material misstatement in the financial statements

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)

Program Prerequisites
Basics of CIRA accounting. GAAP, GAAS, and SSARS standards are also important in the industry.

Advance Preparation
None