The third paper in our Financial Discussion series dives into guidance on eliminating developer fees in consolidated financial reporting.
Under current accounting guidelines, developer fees are eliminated when preparing consolidated financial statements.
– How should the developer eliminate the profit realized on the developer fees?
– How should the developer determine the profit and does it matter if the developer fee is deferred?
– Should only the deferred fee be eliminated and not the fee paid from third party sourced debt and investor equity?