# ASC 323-970-30: Investments—Equity Method and Joint Ventures — Real Estate—General — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/323/970/#30-initial-measurement) 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): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:28a6194eb31345632e7fea605c7690ea4f2286c17739c1c72ca74d47276c614f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 323-970-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/323/970/#30-initial-measurement) SEC content: no #### Accounting by the Investor for Certain Transactions with a Real Estate Venture ##### [323-970-30-1](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:af07ff6121c10c3aa6f1d501b20326c939ad0123b8d7d9a902f9fa529af9c36b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Section applies to investments accounted for by the equity method. ##### [323-970-30-2](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:eab64f968b7ab7184f93dcbf8332594826839e5b1f94e8bee20a45acf5151bda Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If all investors contribute cash at the formation of the [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."), each investor shall record its investment at the amount of the cash contributed. ##### [323-970-30-3](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:71f538c4c36ef8c9cbbb3ae48de001d170e099ee38a30f4e47558f77d1964298 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3A) . 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](https://asc.understandingaccounting.org/asc/610/20/#610-20-25-5) and [610-20-25-7](https://asc.understandingaccounting.org/asc/610/20/#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](https://asc.understandingaccounting.org/asc/610/20/#610-20-32-4) and includes that amount in the consideration used in calculating the gain or loss on derecognition of the property. ##### [323-970-30-4](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:16132d0e7557191aac66f4277f33893154017e9c982e84ec5ddae2eb79a397cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-05](https://asc.understandingaccounting.org/updates/asu-2017-05/). ##### [323-970-30-5](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:154ec70feeddc03ba6424d89ce049676cb2a48fab5f7ef1bbec0d77269eac7f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-05](https://asc.understandingaccounting.org/updates/asu-2017-05/). ##### [323-970-30-6](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:abcd33c82a56efb722ce4ac578a7059a588a9074821095d523b5f9cf3baffd00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/s/#syndication-activities "Efforts to directly or indirectly sponsor the formation of entities that acquire interests in real estate by raising funds from investors. As consideration for their investments, the investors receive ownership or other financial interests in the sponsored entities. All general partners in syndicated partnerships are deemed to perform 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. ##### [323-970-30-7](https://asc.understandingaccounting.org/asc/323/970/#323-970-30-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:42:52.756Z to 2026-09-09T23:42:52.756Z Record version: sha256:13ae08b55026e15762f8137eac327410a6824d254ba0e63709907e5a8251bf13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.