Real Estate and Construction Industry Developments-2012/13 Audit Risk Alert

This Audit Risk Alert focuses on current and emerging practice issues and current economic, accounting and auditing developments affecting real estate ventures and construction contractors and those who audit those entities.

New accounting and auditing guidance and exposure drafts that are particularly significant to this alert include: FASB ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income; FASB ASU No. 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment; FASB ASU No. 2011-09, Compensation-Retirement Benefits-Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer's Participation in a Multiemployer Plan; FASB ASU No. 2011-10, Property, Plant, and Equipment (Topic 360): Derecognition of in Substance Real Estate-a Scope Clarification (a consensus of the FASB Emerging Issues Task Force); FASB ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05; and more.

To comply with the professional standards, auditors need to understand the industry, regulatory, and other external factors that affect the entity and its environment. This helps you identify those factors and how they may be a source of risk. You'll not only find targeted discussion of new developments and considerations, but also a look at what's in the pipeline that may affect your engagements.