Holders of foreclosed real estate properties would not be required to depreciate such assets during the first year of foreclosure, but would have to record in earnings the revenue and expenses related to the operation of the asset, according to a proposed position statement to be issued soon by the American Institute of Certified Public Accountants.

The proposal would standardize the accounting for foreclosed properties by all current holders, including banks, thrifts and insurance companies that are filing financial statements based on generally accepted accounting principles.

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