FASB Reconsidering Capitalization of REIT Acquisition Transaction Costs, Analyst Says

Ross Prindle, managing director and global head of the real estate advisory group at Duff & Phelps, participated in a video interview at Nareit’s REITwise: 2018 Law, Accounting & Finance Conference in Hollywood, Florida.

Prindle discussed phase three of the Financial Accounting Standards Board’s (FASB) project to improve the accounting for asset acquisitions and business combinations. He explained that prior to FASB’s new definition of a business, acquisitions were treated as business combinations and REITs had to expense their transaction costs.