GAAP Accounting

Some buildings don’t produce GAAP financial statements each year, using another basis to prepare their reports (such as cash or tax).  When a buyer is considering multiple apartments & compares financial statements (they’re not just buying a home, but making a major investment), this difference in basis can make comparison difficult.

Co-op and condo corporations should be required to prepare U.S. GAAP based (or IFRS based) financial statements each year, distributing this data to their shareholders and potential investors.  IFRS (International Financial Reporting Standards) based statements would be a boon to older co-ops (& possibly condos), as building value could be adjusted to market value each year.

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