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The guidance in this Section applies to investments accounted for by the equity method.
","snippet":"The guidance in this Section applies to investments accounted for by the equity method.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af07ff6121c10c3aa6f1d501b20326c939ad0123b8d7d9a902f9fa529af9c36b","downloaded_from":"2026-09-09T23:42:52.756Z","last_downloaded_at":"2026-09-09T23:42:52.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477459","source_sha256":"bf5ae20617ce4536b1eee6df8dfd1f456a4030d94e50bc2c32b06fcc80d9f9c0"}},{"citation":"323-970-30-2","para":"30-2","html":"
If all investors contribute cash at the formation of the real estate venture, each investor shall record its investment at the amount of the cash contributed.
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An investor that contributes real estate to the capital of a real estate venture generally should record its investment in the venture at fair value when the real estate is derecognized, regardless of whether the other investors contribute cash, property, or services. The transaction shall be accounted for in accordance with the guidance in paragraphs
360-10-40-3A through 40-3C
. Some transactions are sales of an ownership interest that result in an entity being an investor in a real estate venture. An example of such a transaction includes one in which investor A contributes real estate with a fair value of $2,000 to a venture and investor B contributes cash in the amount of $1,000. The real estate is not considered a business or nonprofit activity and, therefore, is within the scope of Subtopic 610-20 on gains and losses from the derecognition of nonfinancial assets. Investor A immediately withdraws the cash contributed by investor B and, following such contributions and withdrawals, each investor has a 50 percent interest in the venture (the only asset of which is the real estate). Assuming investor A does not have a controlling financial interest in the venture, investor A applies the guidance in paragraphs 610-20-25-5 and 610-20-25-7. When investor A meets the criteria to derecognize the property, investor A measures its retained ownership interest at fair value consistent with the guidance in paragraph 610-20-32-4 and includes that amount in the consideration used in calculating the gain or loss on derecognition of the property.
","snippet":"An investor that contributes real estate to the capital of a real estate venture generally should record its investment in the venture at fair value when the real estate is derecognized, regardless of whether the other i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71f538c4c36ef8c9cbbb3ae48de001d170e099ee38a30f4e47558f77d1964298","downloaded_from":"2026-09-09T23:42:52.756Z","last_downloaded_at":"2026-09-09T23:42:52.756Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477459","source_sha256":"bf5ae20617ce4536b1eee6df8dfd1f456a4030d94e50bc2c32b06fcc80d9f9c0"}},{"citation":"323-970-30-4","para":"30-4","html":"
Paragraph superseded by Accounting Standards Update No. 2017-05.
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Paragraph superseded by Accounting Standards Update No. 2017-05.
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The contribution of real property or an intangible to a partnership or joint venture shall be accounted for in accordance with Subtopic 610-20. The contribution of services or real estate syndication activities in which the syndicators receive or retain partnership interests are accounted for in accordance with the guidance in Topic 606 on revenue from contracts with customers.
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An investor shall not record as income its equity in the venture's profit from a sale of real estate to that investor; the investor's share of such profit shall be recorded as a reduction in the carrying amount of the purchased real estate and recognized as income on a pro rata basis as the real estate is depreciated or when it is sold to a third party. Similarly, if a venture performs services for an investor and the cost of those services is capitalized by the investor, the investor's share of the venture's profit in the transaction shall be recorded as a reduction in the carrying amount of the capitalized cost.
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