Condos: GAAP, GAAS, and SSARS Issues (Currently Unavailable)

Author: Pat Patterson

This course explains the varied and unusual details of Condominium Associations (CONDOS) and the Generally Accepted Accounting Principles (GAAP), the Generally Accepted Audit Standards (GAAS), and the Statements on Accounting and Review Standards (SSARS) positions of the Common Industry Realty Association (CIRA) Industry. There are specific Topics in the Financial Accounting Standards Board (FASB) that deal with the CIRA industry and Condominium Association. The CIRA industry has auditing standards that relate often to state laws and rules for Condominium Associations.

Publication Date: March 2020

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

• Differences between associations like residential and commercial Condos
• Timeshares and Condos (both residential and commercial) as required
• How the differences effect the filing of federal and state tax returns.
• Is depreciation any different in a Condo compared to another entity?
• What level of service is required and when
• Revenue Recognition specifically for Condos

Learning Objectives

• Identify the types of engagements available to a Condominium Association, 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 make 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
• Identify and explain the capitalization policy of a Condominium Association
• Identify a form of ownership in which a corporation, rather than the tenant-shareholders, have title to all real estate within the development
• Recognize which type of CIRA is also referred to as an "umbrella association"
• Describe the steps in the new revenue recognition model with respect to Coops
• Identify correct statements regarding condo specific revenue situations
• Recognize the area of a disconnect between a compilation and a preparation engagement
• Differentiate AR-C Sections relating general principles for engagements performed in accordance with SSARS

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

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

Advance Preparation
None