Homeowners’ Association: GAAP, GAAS, and SSARS Issues

Author: Pat Patterson

CPE Credit:  2 hours for CPAs

This course explains the varied and unusual details of Homeowners’ Associations (HOAs) 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 the HOA Association. The CIRA industry has auditing standards that relate often to state laws and rules for Homeowners’ Associations.

Publication Date: March 2020

Designed For
CPAs, Property Managers, Investors, and other accounting professionals working in the accounting and audit areas of HOAs. 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 mixed use HOAs
  • Homeowners' Associations with large amenity property as required
  • How the differences effect the filing of federal and state tax returns.
  • Is depreciation any different in an HOA compared to another entity?
  • What level of service is required and when
  • Revenue Recognition specifically for HOAs

Learning Objectives

  • Identify the types of engagements available to a Homeowners' 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 Homeowners' Association
  • Recognize when to apply the new revenue recognition model as prescribed by ASC 606
  • Differentiate types of assessments
  • Describe SSARS requirements related to compilation of pro forma financial information


Instructional Method

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

Registration Options
Regular Fee $59.00

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