| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #7325 | Closed | public | Multifamily | Les Sparks |
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Now that deferred financing fees are reported net of the note payable, where should other intangible assets be reported? We have HUD properties that pay a material broker commission when they enter into a commercial lease or cell tower lease. The HUD property is the lessor. We have historically recorded that payment as an intangible asset (included with deferred financing fees) and amortized it over the life of the lease. Would we continue to do that and net the lease commission asset against the unrelated notes payable? Or would we report the lease commission asset as an “other asset” or “prepaid expense”? |
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From Les Sparks: Amounts that continue to be reported as deferred assets will be reported on the same lines as they were last year. If that makes it uncomfortable as it feels like there may be scrutiny, then move the amounts to account 1590 and give an explanation of the reason for the amount being there. HUD is not looking to determine what should or not be reported in those line. They are leaving those lines because other projects have similar other assets that still require amortization. Leaving it where it was should not cause any problems. |