Your Ask Joey ™ Answer

What is the difference between greenfield and brownfield?

Greenfield and brownfield are two terms that are often associated with investments or real estate. If you are in finance or accounting, you have probably seen a company use these terms when they are describing new stores or locations that were added during a period.

A company may indicate that they added 10 sites or stores during the period, and investors/shareholders would want to know whether they were greenfield or brownfield.

Greenfield refers to a new site development, which means there was nothing there before. A brownfield is similar to a remodel in that existing facilities are used rather than developing new facilities.

For example, if Billy’s Burger Shop built a new burger shop on a nice lush grassy field, that would be considered a greenfield. However, if they converted an old smelly gas station to a burger shop, that would be considered a brownfield.


Back To All Questions

You might also be interested in...

  • Discontinued Operations on the FAR CPA Exam

    Overview of Discontinued Operations In financial reporting, discontinued operations refer to a component of a company’s core business or product line that have been divested or shut down. Discontinued operations will be reported (net of tax) separately from continuing operations on the income statement. The reason that discontinued operations are reported separately is so that...

  • Equity Method Excel Workbook

    If you would like to use the Excel workbook that was used to create the Universal CPA lecture on the equity method, please click the link below to download the Excel workbook: Equity Method Lecture Example https://youtu.be/QE4flnmuSkw

  • How Hard is the CPA Exam?

    So you’re thinking about taking the CPA exam? Whether you have a dream of becoming a tax advisor, feel as though you need public accounting experience, or just want to solidify your business acumen, the CPA license is one of the most prestigious and well respected licenses in the business world. The exam itself is...