How to Record REIT Director Fee Accrual
Accruing the quarterly cash compensation for independent board members of the REIT.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Board of Director Fees - G&A Expense | Debit | 150,000.00 | - |
| Accrued Liabilities | Credit | - | 150,000.00 |
💡 Accountant's Note
REITs must record director fees as general and administrative expenses in the period the service is provided, creating a liability until the quarterly payment date.
Practitioner & Systems Framework
💻 ERP Architecture
Use the corporate ledger rather than the property-level ledger as this is a REIT-level administrative cost.
⚠️ Audit Flags
Comparison of accrued amounts to the Board Compensation Policy disclosed in the Proxy Statement.
📄 Required Documentation
Board meeting minutes confirming attendance and the approved compensation schedule.
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Discussion & Community Questions
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