Many companies have internal real estate property acquisitions departments. The employees in those departments spend full time searching for and managing the acquisition of real estate properties (for example, property zoned for commercial development, occupied commercial buildings, and shopping centers). Statement 67 “establishes accounting and reporting standards for acquisition, development, construction, selling, and rental costs associated with real estate projects.” Statement 67 also provides the accounting for, among other matters, preacquisition costs related to real estate projects. Preacquisition costs are defined in Statement 67 as "costs related to a property that are incurred for the express purpose of, but prior to, obtaining that property. " Paragraphs 4 and 5 of Statement 67 address the accounting for preacquisition costs as follows: Copyright © 1998, Financial Accounting Standards Board Not for redistribution Page 1Payments to obtain an option to acquire real property shall be capitalized as incurred. All other costs related to a property that ar
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