Revenue Recognition for Property Management Professionals
As a property manager, your income is tied to tenants under lease, who are paying rent. This also includes CAM, late fees, and other charges.
Changes to the U.S. Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS) for revenue recognition in 2017 and 2018 will have an impact on your firm’s accounting practices. These changes come with new requirements – recognizing revenue on non-lease related items, in a different method than your organization may be doing today.
For example, leases over 12 months must now be on balance sheet, as opposed to the profit and loss statement.
It is your organization’s responsibility to stay up to date with the new changes in revenue recognition. But when it comes to preparing for the mandated changes, you are not alone. The professional at Palazzo, Inc can help you make the transition.