Accounting Major And Career – Essay Example
Land does not grow on trees, there can be accretion, but land does not multiply and the moment you give up your land by giving it away or by selling it, then, definitely, you lose your land. Land is a very valuable asset for any individual or business entity, thus it is of paramount importance that whether you keep your land or not, a most reasonable value must be assigned to it. Your land, whether it is improved, developed or not, may be referred to in legal terms as a real estate property or realty.
A real estate company can be a very simple entity, when it is in the business of acquiring land and developing it for marketing purposes for one kind of real estate only, either for residential or commercial purpose. When a company will venture into multiple real estate development, to include residential, commercial, industrial and memorial park, then the accounting department of such a company, more particularly its accountant will be guaranteed to suffer headaches every now and then, in its thrust to be accurate and timely in its financial reports, with proper segregation of the development costs and other incidental costs into the different classification of real estate projects.
Majoring in accounting would be a great boost to my professional endeavor that I shall pursue, which is to work in a real estate company. The basic tool that will be useful for me is my knowledge in assigning the accurate development cost, when it comes to the usage of the heavy equipment such as the bulldozer, the back-hoe, the pavers and the cement mixers, which are all needed in building roads and perimeter fences. I have to study at this point how I can apportion the repairs, gasoline and fuel expenses, the salaries of the driver that will be consumed in the same equipment, but will be utilized with several varying projects. As an accountant, I have to be tedious and competent in seeing to it that the actual development costs will adhere to the prepared estimated costs. I have to be adept in creating the proper forms to be used by the company, to record and report the acquisition of materials and its releases for development purposes. All of these I have to oversee, for me to arrive at a well-prepared and well-analyzed financial reports concerning the costs to assign on each real estate project, which could be on a per hectare, per acre, per square meter or a per square foot basis.
Being accurate in determining the acquisition cost and the development cost of the land that will be established as an inventory for sale, it will be my job to recommend to the management the other incidental costs that should be incorporated, such as Commission Expense, Promotion Reserves, Government Taxes and Advertising Costs; to enable management to dispose of its inventory at the maximum price the market can bear.
As an accountant of a real estate company, I should be aware of the Financial Accounting Standards Board Statement No. 157, which is a guide in my financial reporting, to arrive at the highest and best use of the real estate asset, whether it will be for sale or not, that a companys real property assets are properly valued, and that those valuations comply with the new standard (Gottlieb, S., Meulmeester, R., Bohlin, M. Financial Reporting for Real Estate: Will FASB 157 Achieve a Higher and Better Use?. Journal of Accountancy. Volume: 207. Issue: 1. Gale, Cengage Learning 2009).
Gottlieb, Steven., Meulmeester, Robert., Bohlin, Matthew. “Financial Reporting for Real
Estate: Will FASB 157 Achieve a Higher and Better Use?” Journal of Accountancy.
Volume: 207. Issue: 1. Gale, Cengage Learning 2009).