# ASC 323-970-40: Investments—Equity Method and Joint Ventures — Real Estate—General — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/323/970/#40-derecognition)

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): 2026-09-09T23:42:57.983Z to 2026-09-09T23:42:57.983Z

Record version: sha256:04102d4da56d6cd21f27d7e5cdf095c7050e8f18648f9fd0e260f1bc78124ef2

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 323-970-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/323/970/#40-derecognition)

SEC content: no

#### Sale of an Investment in a Real Estate Venture

##### [323-970-40-1](https://asc.understandingaccounting.org/asc/323/970/#323-970-40-1)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:42:57.983Z to 2026-09-09T23:42:57.983Z

Record version: sha256:2467d6fa25e009373d85ebbdd6ac97fa8b0d062548d9a0999311a0711512dfbb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A sale of an investment in a consolidated [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.") (including the sale of stock in a corporate real estate venture) shall be evaluated under the guidelines set forth in paragraphs

[360-10-40-3A through 40-3B](https://asc.understandingaccounting.org/asc/360/10/#360-10-40-3A)

. The sale of a noncontrolling investment in a real estate venture that is being accounted for in accordance with Topic 320 on investments—debt securities; Topic 321 on investments—equity securities; Topic 323 on investments—equity method and joint ventures; or Topic 325 on investments—other, shall be accounted for in accordance with the guidance in Topic 860 on transfers and servicing.

#### Acquisition, Development, and Construction Arrangements

##### [323-970-40-2](https://asc.understandingaccounting.org/asc/323/970/#323-970-40-2)

Pending content: no

Source downloaded (UTC): 2026-09-09T23:42:57.983Z to 2026-09-09T23:42:57.983Z

Record version: sha256:6e775ced58dd65afd03d0a1279a27cbd35087e4cf69be4f57025284283a89e8e

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


See the [Acquisition, Development, and Construction Subsection](https://asc.understandingaccounting.org/asc/310/10/#40-derecognition) of Section 310-10-40 for additional guidance concerning derecognition of [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.") that are required to be accounted for as real estate joint ventures under that guidance.