ABSTRACT
Financial statements are critical for any real estate project requiring external financing, i.e. equity and/or debt, especially for underwriters. These statements provide a standardized accounting picture of a project's operations and financial position at present, financial statements, and in the future pro forma. The statements provide a common "template" with standard rules demonstrating the operational performance for a real estate project. These statements all follow one of two forms: US GAAP or International Financial Reporting Services (IFRS). The statements are the basis of most financial decisions for a project. The four primary financial statements are: Balance Sheet; Income Statement; Statement of Cash Flow; and Statement of Retained Earnings. The Income Statement reports sources and amounts of a project's revenue and the nature of the project's exposure that summarize to earnings in a particular period.
