Real Estate guidebook 2020/2021. Accounting Case Studies in the Real Estate Sector
The year 2020 in the real estate sector was full of interesting trends, which had not been predicted in the negative forecasts dating back to the beginning of the pandemic.
- What undoubtedly deserves attention is the significant changes in the way the attractiveness of individual sectors is perceived by institutional investors present in the Polish market.
- In terms of the transaction volume, the warehouse sector dominated, gaining in attractiveness also due to the shift of a considerable share of sales from offline to online channels.
- The housing sector did well, becoming an alternative – especially for cash purchasers – to equity deposits due to record low interest rates.
- At the same time, the shopping centre sector is facing a downward tendency not only due to a series of restrictions, but primarily because of the exodus of consumers to the e-commerce sector.
- In anticipation of redefining the function of office space, a significant number of institutional investors are holding off on their decisions, resulting in a halving of transaction volume compared to 2019.
It is to be expected that this is not the end of changes and twists in the real estate sector. Their pace will undoubtedly be accelerated by further amendments to tax or accounting regulations.
In response to a growing number of concerns about their application in practice, and based on our experience working with clients in the construction and real estate industries, we have prepared the “Real Estate Guidebook 2020/2021”. Our guidebook is designed to assist financial and accounting departments not only in their day-to-day activities, but also when facing complex accounting issues when preparing financial statements for the real estate or construction sector.
As in previous editions (published under our previous TPA Poland brand), the layout of this guidebook has been designed to reflect the order in which real estate companies operate and carry out investment activities. The presented accounting solutions are based on the International Financial Reporting Standards (IFRS), by which all financial reports for the period beginning January 1, 2020, will have to abide. The publication also highlights the basic differences between the IFRS and Polish accounting standards (PAS).