{"product_id":"real-estate-accounting-made-easy-isbn-9781119626817","title":"Real Estate Accounting Made Easy","description":"\u003cp\u003e\u003cb\u003eGrasp the fundamentals of real estate accounting, finance, and investments\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e is just that—an accessible beginner’s guide for anyone who needs to get up to speed on the field of real estate accounting, finance, and investments. Beginning with the elementary aspects of real estate to ensure that you’re comfortable with the subject matter, it goes on to explore more in-depth topics in a way that’s easy to digest.\u003c\/p\u003e \u003cp\u003eThe book begins with discussions on introduction to the real estate industry and basic real estate accounting. Building on knowledge from the initial chapters, the book goes on to cover the different form of real estate organizations, financial statements such as the balance sheet, income statement, shareholders equity and the statement cash flow, and more.\u003c\/p\u003e \u003cp\u003e• Provides theories and practices of real estate from an accounting, financial, and investments perspective\u003c\/p\u003e \u003cp\u003e• Advanced transactions are discussed in an easy-to-understand manner\u003c\/p\u003e \u003cp\u003e• Content reflects the FASB’s new standards on revenue recognition and lease accounting\u003c\/p\u003e \u003cp\u003e• Accounting for operating property expenses, operating expenses reconciliation and recoveries, lease incentives and tenant improvements, budgeting, variance analysis are discussed in detail\u003c\/p\u003e \u003cp\u003e• Covers types of financing for real estate acquisitions, accounting for real estate investments, project development costs, and real estate brokerage\u003c\/p\u003e \u003cp\u003e• The book also walks you through the financial audit process\u003c\/p\u003e \u003cp\u003eIf real estate is a new territory for you, fear not! This book helps new auditors, accounting, finance, and investment professionals, and users of financial reports understand the fundamentals of the financial aspect of the real estate business.\u003c\/p\u003e \u003cp\u003eAbout the Author xi\u003c\/p\u003e \u003cp\u003ePreface xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Introduction to Real Estate 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTypes of Real Estate Assets 1\u003c\/p\u003e \u003cp\u003eCommon Industry Terms 8\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Basic Real Estate Accounting 17\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHistory of Double-Entry Bookkeeping 17\u003c\/p\u003e \u003cp\u003eTypes of Accounts 18\u003c\/p\u003e \u003cp\u003eAccounting Methods 22\u003c\/p\u003e \u003cp\u003eRecording of Business Transactions in the Accounting System 23\u003c\/p\u003e \u003cp\u003eJournal Entries 24\u003c\/p\u003e \u003cp\u003eBasic Accounting Reports 26\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Forms of Real Estate Organizations 39\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSole Ownership 40\u003c\/p\u003e \u003cp\u003eCommon and Joint Ownership 40\u003c\/p\u003e \u003cp\u003ePartnerships 41\u003c\/p\u003e \u003cp\u003eJoint Ventures 43\u003c\/p\u003e \u003cp\u003eCorporations 44\u003c\/p\u003e \u003cp\u003eLimited Liability Companies 45\u003c\/p\u003e \u003cp\u003eReal Estate Investment Trusts 46\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Accounting for Operating Property Revenues 49\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eContracts with Multiple Components 49\u003c\/p\u003e \u003cp\u003eLease Classification 50\u003c\/p\u003e \u003cp\u003eLessor Accounting of Operating Leases 51\u003c\/p\u003e \u003cp\u003eTypes of Operating Leases 52\u003c\/p\u003e \u003cp\u003eAdditional Cost Recoveries 57\u003c\/p\u003e \u003cp\u003eOperating Expenses Gross-Up 58\u003c\/p\u003e \u003cp\u003eContingent Rents 59\u003c\/p\u003e \u003cp\u003eRent Straight-Lining 60\u003c\/p\u003e \u003cp\u003eModification of an Operating Lease 65\u003c\/p\u003e \u003cp\u003eSublease of Operating Lease 67\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Accounting for Operating Property Expenses 69\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLessee Measurement and Recording of Operating and Finance Leases 70\u003c\/p\u003e \u003cp\u003eContracts with Multiple Components 71\u003c\/p\u003e \u003cp\u003eLease Liabilities and Right-of-Use Assets 73\u003c\/p\u003e \u003cp\u003eInitial Direct Costs 74\u003c\/p\u003e \u003cp\u003eLessee Journal Entries of Operating and Finance Leases 75\u003c\/p\u003e \u003cp\u003eLessor Operating Property Expenses 81\u003c\/p\u003e \u003cp\u003eOperating Costs 82\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Operating Expense Reconciliation and Recoveries 91\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMost Common Recoverable Operating Expenses 92\u003c\/p\u003e \u003cp\u003eMost Common Nonrecoverable Operating Expenses 92\u003c\/p\u003e \u003cp\u003eCalculating Tenant Pro Rata Share of Expenses 93\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Lease Incentives and Tenant Improvements 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eLease Incentives 97\u003c\/p\u003e \u003cp\u003eTenant Improvements 99\u003c\/p\u003e \u003cp\u003eTenant Improvement Journal Entries 99\u003c\/p\u003e \u003cp\u003eFurther Comparison of Lease Incentives and Tenant Improvements 100\u003c\/p\u003e \u003cp\u003eDifferences in Cash Flow Statement Presentation 101\u003c\/p\u003e \u003cp\u003eDemolition of Building Improvement 101\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Budgeting for Operating Properties 103\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is a Budget? 103\u003c\/p\u003e \u003cp\u003eComponents of a Budget 103\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Variance Analysis 109\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSample Operating Property Variance Analysis 109\u003c\/p\u003e \u003cp\u003eSalient Points on a Variance Analysis 112\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Market Research and Analysis 113\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMarket Research Defined 113\u003c\/p\u003e \u003cp\u003eMarket Analysis Defined 113\u003c\/p\u003e \u003cp\u003eMarket Research: Practical Process 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Real Estate Valuation and Investment Analysis 121\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eWhat is Real Estate Valuation? 121\u003c\/p\u003e \u003cp\u003eApproaches to Real Estate Valuation 122\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Financing of Real Estate 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEquity 133\u003c\/p\u003e \u003cp\u003eDebt Financing 133\u003c\/p\u003e \u003cp\u003eOther Financing Sources 136\u003c\/p\u003e \u003cp\u003eTypes of Loans 137\u003c\/p\u003e \u003cp\u003eDebt Agreements 137\u003c\/p\u003e \u003cp\u003eFinancing Costs 141\u003c\/p\u003e \u003cp\u003eRelationship Between a Note and a Mortgage 142\u003c\/p\u003e \u003cp\u003eAccounting for Financing Costs 142\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Accounting for Real Estate Investments and Acquisition Costs 143\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMethods of Accounting for Real Estate Investments 143\u003c\/p\u003e \u003cp\u003ePurchase Price Allocation of Acquisition Costs of an Operating Property 148\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Accounting for Project Development Costs on GAAP Basis 153\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eStages of Real Estate Development Projects 153\u003c\/p\u003e \u003cp\u003ePre-development Stage 154\u003c\/p\u003e \u003cp\u003eDevelopment Stage 156\u003c\/p\u003e \u003cp\u003ePost-development Stage 161\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Real Estate Development Revenue Recognitions 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eRequirements for Revenue Recognition 164\u003c\/p\u003e \u003cp\u003eRevenue Recognition Journal Entries 165\u003c\/p\u003e \u003cp\u003eRevenue Recognition When Performance Obligation is Satisfied Over Time 166\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Real Estate Brokerage Accounting 169\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eReal Estate Brokerage Revenues 169\u003c\/p\u003e \u003cp\u003eBrokerage Commissions in Real Estate Development Projects 174\u003c\/p\u003e \u003cp\u003eReal Estate Brokerage Costs 176\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 17 Audits 179\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAudit Overview 179\u003c\/p\u003e \u003cp\u003eTypes of Audits 185\u003c\/p\u003e \u003cp\u003eIndex 191\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eOBIOMA ANTHONY EBISIKE\u003c\/b\u003e is an economist, certified public accountant (CPA), and a chartered accountant. He holds a PhD in Economics (with honors) from The New School for Social Research, a Master's degree in Real Estate Finance and Investments from New York University, and a Bachelor's degree in Accounting (Magna cum Laude) with minors in Finance and in Economics from The College of Staten Island, The City University of New York.  \u003c\/p\u003e\u003cp\u003eDr. Ebisike has extensive work experience and has held senior management positions at industry leading firms, such as Douglas Elliman Real Estate, ICON Investments, Hines Interests LP and was an Audit and Advisory Services Manager at Deloitte \u0026amp; Touche LLP.  \u003c\/p\u003e\u003cp\u003eDr. Ebisike is a faculty member at the NYU Real Estate Institute. He is also the author of \u003ci\u003eThe Fallouts: Banks and Financial Crises\u003c\/i\u003e. He lives in New York City.  \u003c\/p\u003e\u003cp\u003e\u003cb\u003e\u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e\u003c\/b\u003e offers an easy to understand solution on real estate accounting, finance, and investments. Even if you do not have a professional grasp of accounting principles and financial reporting, this book makes it all clear with accounting rules explained in terms anyone can understand. The book is up to date with recent accounting pronouncements and helps readers better understand the real estate sector from an accounting and finance perspective.\u003c\/p\u003e \u003cp\u003eThe real estate industry is complex, with many specific concepts and requirements that do not apply anywhere else. It can therefore be time consuming for accountants, investors, auditors, and others to develop a robust enough understanding of real estate to do their jobs. \u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e resolves this issue completely, providing an introduction to the real estate industry and a concise yet complete guide to its accounting principles.\u003c\/p\u003e \u003cp\u003eReaders with no prior real estate experience will especially appreciate the first two chapters, which define key real estate terms and products and give a clear overview of the fundamentals of real estate. The subsequent chapters discuss a broad range of topics in real estate accounting, including various forms of ownership, accounting for property operation, real estate valuation and financing, and more.\u003c\/p\u003e \u003cp\u003eOne of the most valuable aspects of \u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e is its coverage of auditing, which will be useful both to auditors and those on the receiving end of audits. Readers will learn what real estate audits consist of, who are subject to them, and what materials auditors typically request. The details inside this book make it possible and even easy to achieve a clean real estate audit.\u003c\/p\u003e \u003cp\u003eThis \u003ci\u003eSecond Edition\u003c\/i\u003e has been updated to reflect the new FASB lease and revenue recognition accounting standards. The updated standard has obsoleted many resources related to real estate accounting, but each chapter of \u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e is thoroughly revised and current. This how-to guide offers a wealth of practical information for putting real estate accounting principles to work.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAn accessible guide to the fundamentals of accounting for the real estate industry\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDistilling the details of real estate accounting into manageable essentials without omitting important specifics, \u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e equips you with the tools you need to perform financial and accounting operations related to the real estate industry. You will become conversant in a broad range of real estate accounting topics, even if you have zero previous experience in real estate.\u003c\/p\u003e \u003cp\u003eAlways practical and never over-technical, this helpful guide:\u003c\/p\u003e \u003cul\u003e \u003cli\u003eDefines important real estate terminology\u003c\/li\u003e \u003cli\u003eProvides a thorough introduction to real estate accounting basics\u003c\/li\u003e \u003cli\u003eDemonstrates accounting for revenues, expenses, capital improvements, and inducements\u003c\/li\u003e \u003cli\u003eDiscusses intermediate topics like budgeting, variance analysis, and market research\u003c\/li\u003e \u003cli\u003eGives detailed, easy-to-follow examples of accounting operations\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eAuthor Obioma A. Ebisike offers workable information and clear examples using accessible terminology. Suitable for investors, analysts, accountants, auditors, and others interested in the real estate industry, \u003ci\u003eReal Estate Accounting Made Easy\u003c\/i\u003e is essential for a clear, concise explanation of real estate accounting and finance.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989921284325,"sku":"NP9781119626817","price":65.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119626817.jpg?v=1761785916","url":"https:\/\/k12savings.com\/products\/real-estate-accounting-made-easy-isbn-9781119626817","provider":"K12savings","version":"1.0","type":"link"}