{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/323/970/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"323","topic_title":"Investments—Equity Method and Joint Ventures","subtopic":"323-970","subtopic_title":"Real Estate—General","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"323-970-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides accounting guidance on various forms of real estate ownership. In addition it addresses investor accounting for certain transactions with a <a href=\"/glossary/r/#real-estate-venture\" class=\"term\" title=\"Any of the following: a joint venture, a general partnership, a limited partnership, and an undivided interest.\"><span>real estate venture</span></a>.</div></div>","snippet":"This Subtopic provides accounting guidance on various forms of real estate ownership. In addition it addresses investor accounting for certain transactions with a real estate venture.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:372c7a0f0a74ff49e9df65e97c02666b5441c841c7dadcf7631dad4ab43f39a6","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}},{"citation":"323-970-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2543B878-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Ownership of real estate or real estate development projects by two or more entities may take several forms. The most common forms are </span></span><span class=\"sfragment\" id=\"sfr_2543BA15-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">a <a href=\"/glossary/c/#corporate-joint-venture\" class=\"term\" title=\"A corporation owned and operated by a small group of entities (the joint venturers) as a separate and specific business or project for the mutual benefit of the members of the group. A government may also be a member of the group. The purpose of a corporate joint venture frequently is to share risks and rewards in developing a new market, product or technology; to combine complementary technological knowledge; or to pool resources in developing production or other facilities. A corporate joint venture also usually provides an arrangement under which each joint venturer may participate, directly or indirectly, in the overall management of the joint venture. Joint venturers thus have an interest or relationship other than as passive investors. An entity that is a subsidiary of one of the joint venturers is not a corporate joint venture. The ownership of a corporate joint venture seldom changes, and its stock is usually not traded publicly. A noncontrolling interest held by public ownership, however, does not preclude a corporation from being a corporate joint venture.\"><span>corporate joint venture</span></a>, </span></span><span class=\"sfragment\" id=\"sfr_2543BB70-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">a <a href=\"/glossary/g/#general-partnership\" class=\"term\" title=\"An association in which each partner has unlimited liability.\"><span>general partnership</span></a>, </span></span><span class=\"sfragment\" id=\"sfr_2543BC66-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">a <a href=\"/glossary/l/#limited-partnership\" class=\"term\" title=\"An association in which one or more general partners have unlimited liability and one or more partners have limited liability. A limited partnership is usually managed by the general partner or partners, subject to limitations, if any, imposed by the partnership agreement.\"><span>limited partnership</span></a>, </span></span><span class=\"sfragment\" id=\"sfr_2543BD3D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">or an <a href=\"/glossary/u/#undivided-interest\" class=\"term\" title=\"An ownership arrangement in which two or more parties jointly own property, and title is held individually to the extent of each party's interest.\"><span>undivided interest</span></a>. </span></span></div></div>","snippet":"Ownership of real estate or real estate development projects by two or more entities may take several forms. The most common forms are a corporate joint venture, a general partnership, a limited partnership, or an undivi…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4111e57ceae3e29c9ceb2b20518bd1a754848d8af5fd5c8402b640374d0d3dd","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}},{"citation":"323-970-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2543BE0C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In this Subtopic, the terms venture and real estate venture apply to all of these ownership arrangements described above. </span></span><span class=\"sfragment\" id=\"sfr_2543BED4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">These forms of ownership differ in legal form and economic substance. </span></span></div></div>","snippet":"In this Subtopic, the terms venture and real estate venture apply to all of these ownership arrangements described above. These forms of ownership differ in legal form and economic substance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6892ed221d5bf6014ddfce480af088adc678bdc6c04c57e73ca95475ecd401a8","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}},{"citation":"323-970-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">See Subtopic <a altsource=\"GUID-5C333DB0-7F32-4828-840D-0C089C9E1E18.ditamap\" class=\"ditamap\">323-740</a> for guidance on accounting for qualified affordable housing investments.</div><div class=\"div pending-text\" id=\"pgroup_2543AF16-6E94-1014-A13F-6E4B94C84136__GUID-071FBA16-931C-4084-9086-AC4D703D0F41\"><div class=\"div date-effective\"><span class=\"transition-header\">Transition date:</span><span class=\"p-alphabet\">(P) December 16, 2026; (N) December 16, 2026</span><span class=\"transition-header pipe-separator\">Transition guidance:</span></div><a href=\"/asc/105/10/#105-10-65-10\" class=\"xref\">105-10-65-10</a>See Subtopic <a altsource=\"GUID-5C333DB0-7F32-4828-840D-0C089C9E1E18.ditamap\" class=\"ditamap\">323-740</a> for guidance on <span class=\"sfragment\" id=\"GUID-46E9C7CE-4B96-4CB4-9B86-BB011C214308\"><span class=\"sfragment-source\">the use of the proportional amortization method to investments made primarily for the purpose of receiving income tax credits and other income tax benefits. </span></span></div></div>","snippet":"See Subtopic 323-740 for guidance on accounting for qualified affordable housing investments.Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance:105-10-65-10See Subtopic 323-740 for guidance o…","pending":true,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6b812d77b9081d4c9f592897c8479990b395c8d63086634585bd31a3b11eb20","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}},{"citation":"323-970-05-5","para":"05-5","html":"<div class=\"asc-body\"><div class=\"norm-text\">The <a href=\"/asc/310/10/#15-scope-and-scope-exceptions\" class=\"xref\">Acquisition, Development, and Construction Subsection</a> of Section 310-10-15 addresses <a href=\"/glossary/a/#acquisition-development-and-construction-arrangements\" class=\"term\" title=\"Acquisition, development, or construction arrangements, in which a lender, usually a financial institution, participates in expected residual profit from the sale or refinancing of property.\"><span>acquisition, development, and construction arrangements</span></a> in which the lender participates in expected residual profit. The <a href=\"/asc/310/10/#25-recognition\" class=\"xref\">Acquisition, Development, and Construction Subsection</a> of Section 310-10-25 provides criteria for distinguishing between such arrangements that shall be accounted for as loans or real estate joint ventures, and provides accounting guidance for circumstances in which such arrangements are required to be accounted for as real estate joint ventures.</div></div>","snippet":"The Acquisition, Development, and Construction Subsection of Section 310-10-15 addresses acquisition, development, and construction arrangements in which the lender participates in expected residual profit. The Acquisiti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1613d7e26c0b1c70048f61c5ac24b9c04726044b72b978aaccc2d129885c25fd","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4c1dd26a16c5e5c9f6c09c44589541961813785c4f3cb9be264bc90ef2df1ee","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d828ca2c540cdf8c26630141ec2191b60bba22f4b760f377b7f14ddbca585c3d","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d828ca2c540cdf8c26630141ec2191b60bba22f4b760f377b7f14ddbca585c3d","downloaded_from":"2026-09-09T23:42:39.496Z","last_downloaded_at":"2026-09-09T23:42:39.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477420","source_sha256":"a4e87334ec01e2fb03b1f10cc3fe619cc03b627575449b69edbc11b346b1e8c4"}}