Accounting for the real estate industry

Bookkeeping as a component of operational accounting

• Nature and function of accounting
• Legal basis and compliance
• Commercial and tax law principles
• 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 entries 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 structure 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 investment property 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