Liability for Estimated Costs in Excess of Estimated Receipts During the Liquidation Period

9 Months Ended

Sep. 30, 2011

Liability for Estimated Costs in Excess of Estimated Receipts During the Liquidation Period [Abstract]

Liability for Estimated Costs in Excess of Estimated Receipts During the Liquidation Period

4. Liability for Estimated Costs in Excess of Estimated Receipts During the Liquidation Period

Under the liquidation basis of accounting, we are required to estimate, and record as an asset, the cash flows from operations through the liquidation period and accrue the costs associated with implementing our plan of liquidation. We currently estimate that we will have operating cash outflows from our estimated costs in excess of our receipts during the liquidation period. Estimated amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvements incurred and paid, the timing of the property sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding up of our operations. These costs are estimated and are expected to be paid out over the remaining liquidation period.

The change in the net liability for estimated disbursements in excess of estimated receipts during liquidation for the four months ended September 30, 2011 is as follows:


	June 1, 2011			Cash Payments and (Receipts)			Change in Estimates			September 30, 2011

Estimated net (inflows) outflows from operating activities	$	157,000		$	(693,000	)	$	298,000		$	(238,000	)
Liabilities:
Liquidation costs		(70,000	)		—			(85,000	)		(155,000	)
Reserve for second quarter 2011 distributions		(614,000	)		614,000			—			—
Redemptions		(50,000	)		50,000			—			—
Capital expenditures		(77,000	)		29,000			—			(48,000	)

		(811,000	)		693,000			(85,000	)		(203,000	)

Total net liabilities for estimated disbursements in excess of estimated receipts during liquidation	$	(654,000	)	$	—		$	213,000		$	(441,000	)

CORNERSTONE REALTY FUND LLC 10-Q