Paul Louis Louis: “Brokers, developers, tenants and landlords will need to be up to speed on the new accounting guidance, mainly for revenue from contracts with customers (codified in ASC 606) and leases (codified in ASC 842).”

IRVINE, CA—The Financial Accounting Standards Board has clarified its more than a decade-old definition of a “business.” The clarification is included in Accounting Standards Update (ASU) 2017-01, which was meant to assist companies in applying the broadly interpreted FASB Statement No. 141(R), Business Combinations (codified in ASC 805).

The clarification will probably result in more commercial real estate acquisition transactions being accounted for as asset acquisitions rather than business combinations, Haskell & White audit principal Paul Louis, CPA, tells We spoke with Louis about the ramifications of this clarification for our industry.

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Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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