FASB issues proposed guidance on investment property entities

McGladrey & Pullen's National Professional Standards Group has published a whitepaper, FASB Issues Exposure Draft on Investment Property Entities, to provide an overview of a proposed FASB Accounting Standards Update (ASU), Real Estate—Investment Property Entities (Topic 973). This proposed ASU, if finalized, would introduce significant changes to financial reporting for investors in real estate that is rented as it would require an entity that meets certain criteria to measure its investment properties at fair value, rather than to apply lease accounting to each individual lease. The proposed amendments also would introduce additional presentation and disclosure requirements for an investment property entity.