Accounting for real estate syndication income and foreclosed assets.

Statement on Auditing Standards no. 69, The Meaning of "Present Fairly in Conformity With Generally Accepted Accounting Principles" in the Independent Auditor's Report, identifies statements of position (SOPs) as sources of established GAAP This month's column summarizes American Institute of CPAs SOPs no. 92-1, Accounting for Real Estate Syndication Income, and no. 92-3, Accounting for Foreclosed Assets.

Both SOPs are available as sepa| rate pamphlets (SOP no. 92-1, product no. 014853; SOP 92-3, product no. 014855) and also are included in the AICPA Technical Practice Aids loose-leaf service. To obtain these publications, contact the AICPA order department, P.O. Box 1003, New York, New York 10108-1003. Telephone: (800) 334-6961 [(800) 2480445 in New York State].

SOP NO. 92-1

On February 6, 1992, the AICPA accounting standards division released SOP no. 92-1, which is an established source of GAAP for income recognition from syndication activities--efforts to directly or indirectly sponsor the formation of limited partnerships, trusts, joint ventures or entities acquiring interests in real estate by raising funds from investors. If the initial closing with investors occurred after March 15, 1992, the SOP is effective. Earlier application is …