Summary of Statement No. 41
Financial Reporting and Changing Prices: Specialized Assets-Income-Producing Real Estate--a supplement to FASB Statement No. 33 (Issued 11/80)
Summary
This Statement supplements FASB Statement No. 33, Financial
Reporting and Changing Prices. It requires enterprises that
present information on a current cost basis to combine measures of
income-producing real estate and related expenses at either
historical cost/constant dollar amounts or at current cost amounts
with current cost measures of other assets and expenses. Statement
33 provides that an enterprise need not present information on a
current cost basis if there would be no material difference between
that information and information on a historical cost/constant
dollar basis. Therefore, an enterprise needs to present information
on a current cost basis only if it has significant holdings of
inventory, property, plant, and equipment apart from
income-producing real estate. This Statement applies to fiscal
years ended on or after December 25, 1980.
The Board will continue to work with its advisory
task group for the real estate industry to develop improved methods
of measuring the effects of changing prices on this industry.