# ASC 360-970-30: Property, Plant, and Equipment — Real Estate—General — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/360/970/#30-initial-measurement)

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## ASC 360-970-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/360/970/#30-initial-measurement)

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### Real Estate Project Costs

#### Allocation of Capitalized Costs

##### [360-970-30-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-30-1)

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The capitalized costs of real estate projects shall be assigned to individual components of the project based on specific identification. If specific identification is not practicable, capitalized costs shall be allocated as follows:

1.  a
    
    Land cost and all other [common costs](https://asc.understandingaccounting.org/glossary/c/#common-costs "Costs that relate to two or more units or phases within a real estate or time-sharing project."), including the costs of [amenities](https://asc.understandingaccounting.org/glossary/a/#amenities "Features that enhance the attractiveness or perceived value of a time-sharing interval. Examples of amenities include golf courses, utility plants, clubhouses, swimming pools, tennis courts, indoor recreational facilities, and parking facilities. See also Promised Amenities.") to be allocated as common costs per paragraphs
    
    [970-340-25-9 through 25-11](https://asc.understandingaccounting.org/asc/340/970/#340-970-25-9)
    
    (before construction), shall be allocated to each land parcel benefited. Allocation shall be based on the [relative fair value before construction](https://asc.understandingaccounting.org/glossary/r/#relative-fair-value-before-construction "The fair value of each land parcel in a real estate project in relation to the fair value of the other parcels in the project, exclusive of value added by on-site development and construction activities.").
    
2.  b
    
    Construction costs shall be allocated to individual units in the [phase](https://asc.understandingaccounting.org/glossary/p/#phase "A contractually or physically distinguishable portion of a real estate project (including time-sharing projects). That portion is distinguishable from other portions based on shared characteristics such as: Units a developer has declared or legally registered to be for sale Units linked to an owners association Units to be constructed during a particular time period How a developer plans to build the real estate project.") on the basis of relative sales value of each unit.
    

If allocation based on relative value also is impracticable, capitalized costs shall be allocated based on area methods (for example, square footage) or other value methods as appropriate under the circumstances.

##### [360-970-30-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-30-2)

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As indicated in paragraph [970-360-35-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-35-1), certain donated land shall be allocated to [project costs](https://asc.understandingaccounting.org/glossary/p/#project-costs "Costs clearly associated with the acquisition, development, and construction of a real estate project.").