Summary of Interpretation No. 43
Real Estate Sales—an interpretation of FASB Statement No. 66
Paragraph 1 of FASB Statement No. 66, Accounting for Sales of Real Estate, states, "This Statement establishes standards for recognition of profit on all real estate sales transactions without regard to the nature of the seller's business." This Interpretation clarifies that the phrase all real estate sales includes sales of real estate with property improvements or integral equipment that cannot be removed and used separately from the real estate without incurring significant costs.
This Interpretation is effective for all sales of real estate with property improvements or integral equipment entered into after June 30, 1999.