Construction Finance

At the of the course, the students should be able to: 1. understand and apply accounting equations; 2. understand principles of accounting for construction and work progress; 3. carry out cash flow analysis in construction; and 4. prepare and interpret profit and loss account of construction firms.

Definition of accounting, the scope and function of financial accounting. The accounting equations, the theory of double entry bookkeeping. Accounting for construction and work in progress. Profit and loss account of a construction firms. Depreciation of assets, cost of capital, working capital and flow of funds, cash flow analysis. Topics include construction financing during all phases of project development involving permanent loans, construction loans, sources of mortgage funds and venture capital, and tax and interest considerations.