On Tuesday, The House Committee on Business Regulation and Consumer Affairs reviewed an amendment to Florida Statute 718 regarding condominium associations and official records. Of interest to CPAs, are the substantial changes to financial reporting requirements for multicondominium associations:

• Extends from 60 to 90 days the time within which the board must prepare or have a third party prepare the annual financial report;
• Requires the Department of Business and Professional Regulation (DBPR) to adopt rules setting forth uniform accounting principles and standards for all associations, including multicondominium associations, and directs the DBPR to consider the number of members and annual revenue of an association when adopting such rules;
• Requires an association to prepare financial statements in accordance with generally accepted accounting principles (GAAP). The required statements are in three levels based on the association's annual revenues:
   * Compiled if revenues are less then $200,000
   * Reviewed if between $200,000 and $400,000; or
   * Audited if in excess of $400,000;
• Provides a limited exception, for an association operating less than 50 units or with $100,000 or less in annual revenues, to prepare a Report of Cash Receipts and Expenditures disclosing certain specified expenses instead of preparing financial statements in accordance with GAAP;
• Authorizes the board of an association to choose a financial reporting method above that which is required by law; and
• Authorizes the members of an association to permit a lower level of review, or to prepare a Report of Cash Receipts and Expenditures, the approval of which must be at a meeting of the membership and which must be renewed annually; and further limits the right of a developer to vote for a lower level of review after the end of the second fiscal year of operation of the association.