Accounting for the real estate industry

Bookkeeping as a component of business accounting

• The nature and function of accounting.
• Legal basis and regularity.
• Principles of commercial and tax law.
• Inventory and stocktaking.

Posting to accounts as part of double-entry bookkeeping

• Booking technique and system.
• Opening and closing accounts.
• Balance sheet accounts.
• Income statement accounts.
• Closing entry via income statement and closing balance sheet account.

Organization of accounting

• Structure and purpose of charts of accounts - Chart of accounts.
• Chart of accounts for the real estate industry compared to the commercial law classification of the balance sheet and income statement.
• Document organization.

Asset accounting in the real estate and housing industry

• Accrual of fixed and current assets.   
• Balance sheet classification of fixed assets.
• Recognition of land and real estate held as fixed assets on acquisition.
• Development and sale in consideration of acquisition and production costs.
• Differentiation between maintenance/repair/modernization.

Recognition of property management costs (operating costs) and rental income

• Recording of ongoing operating costs during the financial year, including maintenance, insurance, heating costs, etc.
• Determination of allocable operating costs as at the balance sheet date and accounting.
• Posting of the operating cost statement.
• Debit entry of monthly rental income including advance payments of operating costs.
• Recognition of rent losses.

Overview of special VAT features for real estate

• VAT on the purchase and sale of land and real estate.
• VAT opting for letting.

Overview of preparatory annual financial statement activities

• Components of the annual financial statements (in particular balance sheet and income statement).
• General valuation and amortization (scheduled and unscheduled).
• Provisions.
• Prepaid expenses and deferred income.
• Retained earnings/renewal reserve.