# ASC 323-970-05: Investments—Equity Method and Joint Ventures — Real Estate—General — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/323/970/#05-overview-and-background) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:42:39.496Z to 2026-09-09T23:42:39.496Z Record version: sha256:d828ca2c540cdf8c26630141ec2191b60bba22f4b760f377b7f14ddbca585c3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 323-970-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/323/970/#05-overview-and-background) SEC content: no ##### [323-970-05-1](https://asc.understandingaccounting.org/asc/323/970/#323-970-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:39.496Z to 2026-09-09T23:42:39.496Z Record version: sha256:372c7a0f0a74ff49e9df65e97c02666b5441c841c7dadcf7631dad4ab43f39a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/r/#real-estate-venture "Any of the following: a joint venture, a general partnership, a limited partnership, and an undivided interest."). ##### [323-970-05-2](https://asc.understandingaccounting.org/asc/323/970/#323-970-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:39.496Z to 2026-09-09T23:42:39.496Z Record version: sha256:c4111e57ceae3e29c9ceb2b20518bd1a754848d8af5fd5c8402b640374d0d3dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#corporate-joint-venture "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."), a [general partnership](https://asc.understandingaccounting.org/glossary/g/#general-partnership "An association in which each partner has unlimited liability."), a [limited partnership](https://asc.understandingaccounting.org/glossary/l/#limited-partnership "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."), or an [undivided interest](https://asc.understandingaccounting.org/glossary/u/#undivided-interest "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."). ##### [323-970-05-3](https://asc.understandingaccounting.org/asc/323/970/#323-970-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:39.496Z to 2026-09-09T23:42:39.496Z Record version: sha256:6892ed221d5bf6014ddfce480af088adc678bdc6c04c57e73ca95475ecd401a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [323-970-05-4](https://asc.understandingaccounting.org/asc/323/970/#323-970-05-4) Pending content: yes Source downloaded (UTC): 2026-09-09T23:42:39.496Z to 2026-09-09T23:42:39.496Z Record version: sha256:d6b812d77b9081d4c9f592897c8479990b395c8d63086634585bd31a3b11eb20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 323-740 for guidance on accounting for qualified affordable housing investments. Transition date:(P) December 16, 2026; (N) December 16, 2026Transition guidance: [105-10-65-10](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-10)See Subtopic 323-740 for guidance on the use of the proportional amortization method to investments made primarily for the purpose of receiving income tax credits and other income tax benefits. ##### [323-970-05-5](https://asc.understandingaccounting.org/asc/323/970/#323-970-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:39.496Z to 2026-09-09T23:42:39.496Z Record version: sha256:1613d7e26c0b1c70048f61c5ac24b9c04726044b72b978aaccc2d129885c25fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [Acquisition, Development, and Construction Subsection](https://asc.understandingaccounting.org/asc/310/10/#15-scope-and-scope-exceptions) of Section 310-10-15 addresses [acquisition, development, and construction arrangements](https://asc.understandingaccounting.org/glossary/a/#acquisition-development-and-construction-arrangements "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.") in which the lender participates in expected residual profit. The [Acquisition, Development, and Construction Subsection](https://asc.understandingaccounting.org/asc/310/10/#25-recognition) 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.