Current aspects of accounting for a developer working with escrow accounts

In 2019, developers switched from shared-equity construction to project financing using escrow accounts. An escrow account is both a settlement and a security instrument that provides an opportunity to protect the interests of both parties in the settlement of a transaction. The main feature of accounting for developers working through escrow accounts is shown through the order of settlements with shareholders. Tax accounting of income and expenses under a shared-equity construction agreement depends on the tax system applied by the developer.