{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/970/#35-subsequent-measurement","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":"340","topic_title":"Other Assets and Deferred Costs","subtopic":"340-970","subtopic_title":"Real Estate—General","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":"Real Estate Project Costs","heading":"Determining Amounts to Be Capitalized or Expensed","paragraphs":[{"citation":"340-970-35-1","para":"35-1","html":"
Estimates and cost allocations shall be reviewed at the end of each financial reporting period until a project is substantially completed and available for sale. Costs shall be revised and reallocated as necessary for material changes on the basis of current estimates. Changes in estimates shall be reported in accordance with paragraphs
250-10-45-17 through 45-20
and 250-10-50-4.
","snippet":"Estimates and cost allocations shall be reviewed at the end of each financial reporting period until a project is substantially completed and available for sale. Costs shall be revised and reallocated as necessary for ma…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c30ac62b5b9613502366648cf82931e2d9f014702351f5b7e5b6bd797bfa1a5f","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"citation":"340-970-35-2","para":"35-2","html":"
Capitalized rental costs directly related to revenue from a specific operating lease or direct financing lease, other than initial direct costs, shall be amortized over the lease term. Capitalized rental costs, other than initial direct costs, not directly related to revenue from a specific lease shall be amortized over the period of expected benefit. The amortization period shall begin when the project is substantially completed and held available for occupancy. See paragraphs
970-340-25-18 through 25-19
for the definition of substantially completed and held available for occupancy. Initial direct costs are defined in Topic 842 on leases, and the accounting for initial direct costs is prescribed in that Topic. Topic 842 does not address whether a lessee that accounts for the sale or rental of real estate projects under Topic 970 should capitalize rental costs associated with ground and building leases.
","snippet":"Capitalized rental costs directly related to revenue from a specific operating lease or direct financing lease, other than initial direct costs, shall be amortized over the lease term. Capitalized rental costs, other tha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c4b68f3e985052ad08f634f2d2917ae1d6e68174d8e1d3d0bba1cded783d21cc","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"citation":"340-970-35-3","para":"35-3","html":"
If an entity subsequently determines that a property will be classified as operating at the date of acquisition, the internal costs of preacquisition activities shall be charged to expense and any additional costs shall be expensed as incurred.
","snippet":"If an entity subsequently determines that a property will be classified as operating at the date of acquisition, the internal costs of preacquisition activities shall be charged to expense and any additional costs shall …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f1550cd058f9b8f484eafc4c379ead1d1fffd5583bae865118f80737c545dbe","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},{"citation":"340-970-35-4","para":"35-4","html":"
If an entity subsequently determines that a property will be classified as nonoperating at the date of acquisition, previously expensed internal costs of preacquisition activities shall not be capitalized as part of the cost of that acquisition.
","snippet":"If an entity subsequently determines that a property will be classified as nonoperating at the date of acquisition, previously expensed internal costs of preacquisition activities shall not be capitalized as part of the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31bd25d3fc9d26654e2be42d6507f806e1f5a53e1a5be839fed52874c61e3da2","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8732cd73a55adb847b7295bdc90844bc9ce3647b46593c563db59097295f33cb","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:745361c42572c089d031e3e4af709b23015ca957bd791b721a86b40c026ef53e","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:745361c42572c089d031e3e4af709b23015ca957bd791b721a86b40c026ef53e","downloaded_from":"2026-09-09T23:59:11.849Z","last_downloaded_at":"2026-09-09T23:59:11.849Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478987","source_sha256":"e9a3bf010c695aef9dc36e3ce6a5707cc4e23b46441a61f02d769c2af511fcb4"}}