Keat Foong, executive editor of Multihousing News Online, discussed the potential impact of the proposed change from Generally Accepted Accounting Practices (GAAP) to International Financial Reporting Standards (IFRS) on valuation of real estate assets. The changeover, proposed by the SEC and scheduled for fiscal years ending on or after December 15, 2014, will require a “Fair Value” for real estate. Changes in value, either losses or increases, will impact the P&L. While it may increase transparency, it will also require real estate be “marked to market” with potentially devastating impact to profitability during down years and severe tax consequences during up years. For the full article and discussion of other impacts [click here].