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New Developments Summary: Real estate -- the new revenue standard

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The new guidance in ASU 2014-09, Revenue from Contracts with Customers, will have a significant impact on entities’ accounting for real estate sales, as most of the prescriptive guidance in ASC 360-20, Property, Plant, and Equipment: Real Estate Sales, is superseded and replaced with a control-based revenue model that applies to all contracts with customers. This bulletin explains the key features of the guidance in ASU 2014-09 and provides practical insights into its application by real estate entities and impact on the real estate industry.