Question
As a public company, REITs are required to report quarterly earnings on a GAAP basis. A big difference between net income on a GAAP basis
As a public company, REITs are required to report quarterly earnings on a GAAP basis. A big difference between net income on a GAAP basis and net income on Funds From Operations is the treatment of depreciation. With GAAP, depreciation is treated as a non cash charge. For FFO, depreciation is ignored and enables investors to measure the cash that is being generated by the REIT.
True or False
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
