ED issued on SOP for the results of operations of foreclosed assets held for sale.The American Institute of CPAs accounting standards executive committee has issued an exposure draft of a proposed statement of position on measuring foreclosed assets after foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. . The proposed SOP, Accounting for the Results of Operations of Foreclosed Assets Held for Sale, applies to all reporting entities except those accounting for assets at fair market value. It also applies to all assets obtained through foreclosure that are considered held for sale, except for inventories, marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. equity securities and real estate previously owned by the lender and accounted for under FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting no. 67, Accounting for Costs and Initial Rental Operations of Real Estate Projects. It does not apply to in-substanceforeclosed assets. Copies of the ED (product no. 800040JA) are available from the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). order department at (800) TO-AICPA. The first copy is free. Additional copies are $2.50 each. |
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