ACCOUNTING ASPECTS OF DEVELOPMENT COMPANIES

Abstract

Property development accounting has seldom been delved into at length in neither accounting literatures nor accounting standards. As a result/ consistency was found to be lacking in the industry. The survey carried out shows that not all development companies share the same- view with regard to certain accounting treatment. Controversial issues include capitalisation of interest expense/ revenue recognition/ costing sales, depreciation of property assets and property asset valuation. As standards pertinent to property development accounting are not specific , accounting policies adopted by development companies were more to adapt to the companies' policy rather than to adhere to the standards. Perhaps it is time for the Singapore Society of Accountants to formulate a set of reasonable flexible accounting standards for development companies in order to promote consistency in the industry. With a measure of business performance using such standards, property companies' financial statements will be easier to compare.