# ASC 360-970: Property, Plant, and Equipment — Real Estate—General Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/970/) 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): 2026-09-10T00:11:50.248Z to 2026-09-10T00:12:34.852Z Record version: sha256:4c358944ef379b6976a1b2e97438dddc2a3987a7f0ab8b9caf4b45aba02df0d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970: Property, Plant, and Equipment — Real Estate—General ### Machine-generated study aids ```json { "summary": "ASC 360-970 gathers the real estate–specific property, plant, and equipment guidance in two sets of subsections: Real Estate Syndication and Real Estate Project Costs. It requires costs clearly associated with the acquisition, development, and construction of a real estate project to be capitalized and then allocated to project components (by specific identification, then relative fair value/sales value, then area methods), addresses donated and abandoned real estate and changes in use, and applies the Subtopic 360-10 impairment model project by project. For syndications, fees paid to and rentals received from a developer-seller under a master leaseback are adjustments to the basis of the property.", "key_points": [ "Payments to and receipts from a developer-seller under a master leaseback negotiated with a real estate syndication are treated by the syndication as adjustments to the basis of the property, affecting future depreciation (360-970-25-1; 360-970-55-2).", "Project costs clearly associated with acquisition, development, and construction of a real estate project shall be capitalized as a cost of that project, and indirect project costs relating to several projects shall be capitalized and allocated among them (360-970-25-2 through 25-3).", "Capitalized costs are assigned to individual project components by specific identification; if impracticable, land and common costs (including amenities) are allocated to benefited parcels on relative fair value before construction and construction costs to units on relative sales value, and if that too is impracticable, by area or other value methods (360-970-30-1).", "Real estate donated to municipalities or governmental agencies for uses benefiting the project is not an abandonment; its cost is allocated as a common cost of the project (360-970-35-1).", "On a change in use under a formal plan expected to produce a higher economic yield, costs charged to expense are limited to the excess of capitalized costs incurred and to be incurred over the estimated value of the revised project when substantially complete (360-970-35-2).", "Impairment follows Subtopic 360-10 (held-for-sale model for substantially completed projects to be sold; held-and-used model for property under or awaiting development and completed projects to be held for rental), evaluated on an individual-project basis, where a project consists of relatively homogeneous integral components (360-970-35-3); insufficient rental demand for a rental project under construction is an additional impairment indicator (360-970-35-4).", "If real estate or rights to real estate are abandoned (e.g., allowing a mortgage foreclosure or option lapse), the capitalized costs shall be expensed and not allocated to other components or projects (360-970-40-1)." ], "categories": [ "Inventory and PP&E", "Initial measurement", "Impairment", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam traps here are the allocation hierarchy (specific identification → relative fair value before construction for land/common costs and relative sales value for construction costs → area methods) and the sharp contrast between donated land (a common cost allocated to the project) and abandoned real estate (expensed immediately, never reallocated). Students often wrongly test impairment at the multiphase-development level; each homogeneous project (tract, condo complex, subdivision) is evaluated separately.", "related_topics": [ "970-340", "970-360", "360-10", "340-40", "410-20", "974-720" ], "key_concepts": [ "real estate project costs", "cost capitalization and allocation", "indirect project costs", "master leaseback", "real estate syndication", "abandonment", "change in use", "impairment of long-lived assets" ] } ``` Source downloaded (UTC): 2026-09-10T00:11:50.248Z to 2026-09-10T00:11:50.248Z Record version: sha256:7fa1bead34f22192e8e488ab27dafa51d1b41ae7e26b02246c45f48d1b492688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/970/#00-status) SEC content: no ##### [360-970-00-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:50.248Z to 2026-09-10T00:11:50.248Z Record version: sha256:3c35adf9092d4619c67f9bc6c62f82b0286ecb73bd07a7acde757dfdeb62b032 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Phase (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Phase (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
970-360-25-2AmendedAccounting Standards Update No. 2020-1010/29/2020
970-360-25-2AmendedAccounting Standards Update No. 2014-0905/28/2014
970-360-25-4AmendedAccounting Standards Update No. 2014-0905/28/2014
970-360-30-1AmendedAccounting Standards Update No. 2014-0603/14/2014
970-360-55-4SupersededAccounting Standards Update No. 2014-0905/28/2014
970-360-55-5SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T00:11:53.873Z to 2026-09-10T00:11:53.873Z Record version: sha256:e8336d0b930188d734aa74d06b63711941e7246b4a479c242a9d5baefff4f479 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/970/#05-overview-and-background) SEC content: no ##### [360-970-05-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:53.873Z to 2026-09-10T00:11:53.873Z Record version: sha256:dedb280f9976557162d702c39520c4b5503d5bd04ef00d170c7137041592a938 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The content in this Subtopic is contained in the Real Estate Syndication Subsections and the Real Estate [Project Costs](https://asc.understandingaccounting.org/glossary/p/#project-costs "Costs clearly associated with the acquisition, development, and construction of a real estate project.") Subsections. ### Real Estate Syndication ##### [360-970-05-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:53.873Z to 2026-09-10T00:11:53.873Z Record version: sha256:c6d5f90642e056c10d8713a2f3d9d876319cb74508f8b2f6914120b648dc467f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate Syndication Subsections of this Subtopic provide guidance on the accounting treatment by a real estate syndication for payments to and receipts from a real estate developer that sold property to the syndication. ### Real Estate Project Costs ##### [360-970-05-3](https://asc.understandingaccounting.org/asc/360/970/#360-970-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:53.873Z to 2026-09-10T00:11:53.873Z Record version: sha256:2da43760cf6efac8953e20e52f22cc12748634adea1f903a750366b7514ec0e0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate [Project Costs](https://asc.understandingaccounting.org/glossary/p/#project-costs "Costs clearly associated with the acquisition, development, and construction of a real estate project.") Subsections of this Subtopic provide recognition and measurement guidance on the allocation of capitalized costs of real estate projects and changes in the use of real estate. In addition, they discuss the treatment of real estate donated or abandoned and the recoverability of the carrying amount of real estate projects. ##### [360-970-05-4](https://asc.understandingaccounting.org/asc/360/970/#360-970-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:53.873Z to 2026-09-10T00:11:53.873Z Record version: sha256:7fab47b576868660a702d78c1f6e20861515dea1118e8d6c849a484a5f5a153a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 970-340 for additional guidance on capitalization of real estate project costs. Source downloaded (UTC): 2026-09-10T00:11:57.409Z to 2026-09-10T00:11:57.409Z Record version: sha256:e26d4ea9fae1201a6071ba87851d071363d90bf3438f93a8470719e686425902 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/360/970/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [360-970-15-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:57.409Z to 2026-09-10T00:11:57.409Z Record version: sha256:eb0963917570a71c05cfa67d1ca739bbf783fd4029a9d9613ddc229e80cbdddf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 970-10-15. ### Real Estate Syndication ##### [360-970-15-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:57.409Z to 2026-09-10T00:11:57.409Z Record version: sha256:26dc7b88eb06651a92a083e92e943499ffe3b52a9d0c4ad6f0aee28d1dbeee92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate Syndication Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Real Estate Syndication Subsection](https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions) of Section 970-10-15. ### Real Estate Project Costs ##### [360-970-15-3](https://asc.understandingaccounting.org/asc/360/970/#360-970-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:57.409Z to 2026-09-10T00:11:57.409Z Record version: sha256:570a35d827c1e81ca8765154fc011318d57b67078217fe6c1d93ba27df245fcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate [Project Costs](https://asc.understandingaccounting.org/glossary/p/#project-costs "Costs clearly associated with the acquisition, development, and construction of a real estate project.") Subsections follow the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see the [Real Estate Project Costs Subsection](https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions) of Section 970-10-15. Source downloaded (UTC): 2026-09-10T00:12:05.574Z to 2026-09-10T00:12:05.574Z Record version: sha256:6af13e83ce94f20f2a8f13ca47549663ff4564a056563f96c22d8fb365efb9ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/360/970/#25-recognition) SEC content: no ### Real Estate Syndication ##### [360-970-25-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:05.574Z to 2026-09-10T00:12:05.574Z Record version: sha256:2668a242432b3dc49a7b1794600d3c8e174701cb80c39a73be82d170cefbc137 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a real estate developer sells a recently constructed office building to a public real estate syndication and negotiates a master leaseback agreement with the syndication general partner, under which the syndication pays a fee to the seller and the seller leases the vacant space at a market rate at the date of sale for a defined lease-up period, payments to and receipts from the seller shall be treated by the syndication as adjustments to the basis of the property and will affect future depreciation. See paragraph [970-360-55-3](https://asc.understandingaccounting.org/asc/360/970/#360-970-55-3) for guidance if the terms of the agreement meet the definition of a derivative. ### Real Estate Project Costs #### Capitalized Project Costs ##### [360-970-25-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:05.574Z to 2026-09-10T00:12:05.574Z Record version: sha256:e95a893b8b982abf7e5de575924d026b232775e3cea5655253935758f80f7011 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Project costs](https://asc.understandingaccounting.org/glossary/p/#project-costs "Costs clearly associated with the acquisition, development, and construction of a real estate project."), which are costs that are clearly associated with the acquisition, development, and construction of a real estate project, shall be capitalized as a cost of that project. See Topic 340-40 for guidance on capitalization of costs that are not within the scope of this Subtopic or Subtopic 970-340. ##### [360-970-25-3](https://asc.understandingaccounting.org/asc/360/970/#360-970-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:05.574Z to 2026-09-10T00:12:05.574Z Record version: sha256:624d1a9933a32f8a6f68495957a5b9a4b985869c0a5f80601d1b470296e73a13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Indirect project costs](https://asc.understandingaccounting.org/glossary/i/#indirect-project-costs "Costs incurred after the acquisition of the property, such as construction administration (for example, the costs associated with a field office at a project site and the administrative personnel that staff the office), legal fees, and various office costs, that clearly relate to projects under development or construction. Examples of office costs that may be considered indirect project costs are cost accounting, design, and other departments providing services that are clearly related to real estate projects.") that relate to several projects shall be capitalized and allocated to the projects to which the costs relate. #### Assets Transferred Between Entities ##### [360-970-25-4](https://asc.understandingaccounting.org/asc/360/970/#360-970-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:05.574Z to 2026-09-10T00:12:05.574Z Record version: sha256:e6c14c156b005723e542740163c27f180286242a6e7826163c1878fea1476a05 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 974-720-25 for adjustment of assets that will be transferred between a real estate investment trust and its adviser. #### Other Considerations ##### [360-970-25-5](https://asc.understandingaccounting.org/asc/360/970/#360-970-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:05.574Z to 2026-09-10T00:12:05.574Z Record version: sha256:84e7fbcaa312a2f674f5c14c154bfaec041af55ee07b21c1ff37f75925e8ee36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Section 410-20-25 regarding accounting for retirement and environmental costs at acquisition. Source downloaded (UTC): 2026-09-10T00:12:09.258Z to 2026-09-10T00:12:09.258Z Record version: sha256:c16addaccd9c0024956e4659430dcd75a69b911ad1b6f4ecab49ee9703f9a1b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/360/970/#30-initial-measurement) SEC content: no ### Real Estate Project Costs #### Allocation of Capitalized Costs ##### [360-970-30-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:09.258Z to 2026-09-10T00:12:09.258Z Record version: sha256:928554e81007fc2ead7a7a4f2c1ae379cda404163d91ec3a8b50da5d162f4bb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:09.258Z to 2026-09-10T00:12:09.258Z Record version: sha256:ab64b255bd3419ab0347ef7a5e01b795a99b26010e17b1fec718ac75349f6a34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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."). Source downloaded (UTC): 2026-09-10T00:12:11.808Z to 2026-09-10T00:12:11.808Z Record version: sha256:41e6a45cfe2050fe2ce670705a59471e2e82a1075acd7a5ba8d90003d5f62518 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/970/#35-subsequent-measurement) SEC content: no ### Real Estate Project Costs #### Real Estate Donated to Government Agencies ##### [360-970-35-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:11.808Z to 2026-09-10T00:12:11.808Z Record version: sha256:6ecc486090fdb45557bab99fc5f2adea46663f4750c12055e869e73bd1ee3bd7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Real estate donated to municipalities or other governmental agencies for uses that will benefit the project are not abandonments. The cost of the real estate donated shall be allocated as a common cost of the project. #### Changes in Use of Real Estate Acquired for Development ##### [360-970-35-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:11.808Z to 2026-09-10T00:12:11.808Z Record version: sha256:cc2e7e77f87a54fa90b103e39697582eead6f58f85c7481fa72a0898393fed11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in the use of real estate comprising a project or a portion of a project may arise after significant development and construction costs have been incurred. If the change in use is made pursuant to a formal plan for a project that is expected to produce a higher economic yield (as compared to its yield based on use before change), the development and construction costs to be charged to expense shall be limited to the amount by which the capitalized costs incurred and to be incurred exceed the estimated value of the revised project when it is substantially complete and ready for its intended use. #### Recoverability ##### [360-970-35-3](https://asc.understandingaccounting.org/asc/360/970/#360-970-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:11.808Z to 2026-09-10T00:12:11.808Z Record version: sha256:4ab037850175d82be2c61049a21155dc063051a253997dca258ed205d5cab067 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The provisions in Subtopic 360-10 for long-lived assets to be disposed of by sale shall apply to a real estate project, or parts thereof, that is substantially completed and that is to be sold. The provisions in that Topic for long-lived assets to be held and used shall apply to real estate held for development, including property to be developed in the future as well as that currently under development, and to a real estate project, or parts thereof, that is substantially completed and that is to be held and used (for example, for rental). Determining whether the carrying amounts of real estate projects require recognition of an impairment loss shall be based on an evaluation of individual projects. An individual project, for this purpose, consists of components that are relatively homogeneous, integral parts of a whole (for example, individual houses in a residential tract, individual units in a condominium complex, and individual lots in a subdivision and [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.")). Therefore, a multiphase development consisting of a tract of single-family houses, a condominium complex, and a lot subdivision generally would be evaluated as three separate projects. ##### [360-970-35-4](https://asc.understandingaccounting.org/asc/360/970/#360-970-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:11.808Z to 2026-09-10T00:12:11.808Z Record version: sha256:6e5429fb49f89e5a740f5787ae2af2f7b4249e9a85440e4a55bc8cf4d2a68525 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [360-10-35-21](https://asc.understandingaccounting.org/asc/360/10/#360-10-35-21) provides examples of events or changes in circumstances that indicate that the recoverability of the carrying amount of a long-lived asset shall be assessed. Insufficient rental demand for a rental project currently under construction is an additional example that indicates that the recoverability of the real estate project shall be assessed in accordance with the provisions of Subtopic 360-10. Source downloaded (UTC): 2026-09-10T00:12:15.720Z to 2026-09-10T00:12:15.720Z Record version: sha256:a11f91eaf38f1dbf65aa082f491758a458a3019ac7686b7a00e6cf2dc0d48b85 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/360/970/#40-derecognition) SEC content: no ### Real Estate Project Costs #### Abandonments ##### [360-970-40-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-40-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:15.720Z to 2026-09-10T00:12:15.720Z Record version: sha256:14c6791e54d2ddbf48bc4b1c4add9d251aed62ddc2e74896a10e00e05a0caf39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If real estate, including rights to real estate, is abandoned (for example, by allowing a mortgage to be foreclosed or a purchase option to lapse), capitalized costs of that real estate shall be expensed. Such costs shall not be allocated to other components of the project or to other projects. Source downloaded (UTC): 2026-09-10T00:12:19.300Z to 2026-09-10T00:12:19.300Z Record version: sha256:432a75a62550cc6b6f62243c5009368f2758fa2b72b0e7b272ebf7d1d8933041 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/360/970/#55-implementation-guidance-and-illustrations) SEC content: no ### Real Estate Syndication #### Implementation Guidance ##### [360-970-55-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:19.300Z to 2026-09-10T00:12:19.300Z Record version: sha256:07e795b6d8ae18ee174b69035daed452788bb9e228a55abbe3c5c76d5c7f7126 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the following example, a real estate developer sells a recently constructed office building to a public real estate [blind pool](https://asc.understandingaccounting.org/glossary/b/#blind-pool-or-partially-blind-pool-partnerships "Partnerships in which investment units are sold before some or all of the properties to be acquired are identified.") syndication. Because the property is not yet fully occupied, the general partner of the syndication negotiates a master leaseback agreement with the seller at the date of the sale. Under the terms of the agreement, the syndication pays a fee to the seller and the seller leases the vacant space at a market rate, at the sale date, for a two-year period. This payment is described as a fee in exchange for signing a master lease or as an escrowed portion of the purchase price. The syndication will relieve the seller of its future lease payment obligations on space the seller subsequently subleases to others if the sublease meets certain criteria. If the seller is unable to lease the vacant space during the two-year period, the rental payments to the syndication would substantially exceed the fee paid by the syndication. ##### [360-970-55-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:19.300Z to 2026-09-10T00:12:19.300Z Record version: sha256:88f399ee5ab603019e639bc7432ec7ba5da2981629a88349c8a094359b03b619 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [970-360-25-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-25-1) states payments to and receipts from the seller should be treated by the syndication as adjustments to the basis of the property and will affect future depreciation. ##### [360-970-55-3](https://asc.understandingaccounting.org/asc/360/970/#360-970-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:19.300Z to 2026-09-10T00:12:19.300Z Record version: sha256:fdf5322604b7377fb6625934fa51feaa9f4857c0ce5e9dd8bd793f41d3cdf9a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Topic 815 would apply if the terms of the agreement meet the definition of a derivative. The agreement would typically meet the scope exception in paragraph [815-10-15-13](https://asc.understandingaccounting.org/asc/815/10/#815-10-15-13) relating to the sales or service revenues of one of the parties to the contract since the underlying is the leasing rental revenue of the syndicate, in which case that Topic would not affect the accounting in this example. ### Real Estate Project Costs ##### [360-970-55-4](https://asc.understandingaccounting.org/asc/360/970/#360-970-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:19.300Z to 2026-09-10T00:12:19.300Z Record version: sha256:175d3e0e456cd19bcac3b4b7e5bc81c7e73e5c380434ae84a8bfbe3362d59827 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [360-970-55-5](https://asc.understandingaccounting.org/asc/360/970/#360-970-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:19.300Z to 2026-09-10T00:12:19.300Z Record version: sha256:8f60d1db4b5e78626addddddbfe7bb57baa79e0e0a923f21f87a729bc948360c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). Source downloaded (UTC): 2026-09-10T00:12:26.012Z to 2026-09-10T00:12:26.012Z Record version: sha256:f8796ffe245e169874dfc2e741bab86394e021649b93b2b7a40e5632c8775e74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-S00: SEC 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/970/#sec-00-status) SEC content: yes ##### [360-970-S00-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-S00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:26.012Z to 2026-09-10T00:12:26.012Z Record version: sha256:48b8b273b5ef2353058b64a608d9734427e1d5879d3b7991df2f7f79da59981a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
970-360-S99-1AmendedAccounting Standards Update No. 2019-0707/26/2019
Source downloaded (UTC): 2026-09-10T00:12:29.172Z to 2026-09-10T00:12:29.172Z Record version: sha256:e59170c2fa76d243e40b37e93216f5fdecf625bd76e498081ae12438ef410385 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/360/970/#sec-50-disclosure) SEC content: yes #### Supplemental Schedules ##### [360-970-S50-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:29.172Z to 2026-09-10T00:12:29.172Z Record version: sha256:a3c58c145cb8499d7d5abe2af25199aaef3bcd42c1209afac64c562119e25206 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [205-10-S99-6](https://asc.understandingaccounting.org/asc/205/10/#205-10-S99-6), Regulation S-X Rule 5-04(c), for the entities required to include Schedule III—Real Estate and Accumulated Depreciation in their reports. ##### [360-970-S50-2](https://asc.understandingaccounting.org/asc/360/970/#360-970-S50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:29.172Z to 2026-09-10T00:12:29.172Z Record version: sha256:cab90fb2ed61dc76a327a7e5e059e0d056a727078228bab0e8f57f6f890d8c5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [970-360-S99-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-S99-1), Regulation S-X Rule 12-28, for the requirements of Schedule III—Real Estate and Accumulated Depreciation. Source downloaded (UTC): 2026-09-10T00:12:34.852Z to 2026-09-10T00:12:34.852Z Record version: sha256:9aede7591946e68d7abc99abffc9a9c106e5da35a15648fdf885d1f844a1a250 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-970-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/360/970/#sec-99-sec-materials) SEC content: yes #### SEC Rules, Regulations, and Interpretations ##### [360-970-S99-1](https://asc.understandingaccounting.org/asc/360/970/#360-970-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:34.852Z to 2026-09-10T00:12:34.852Z Record version: sha256:f8586754a4f319df28368c560840d9380d33d1d25b61e6a4c6337135a3f275e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of Regulation S-X Rule 12-28, Real Estate and Accumulated Depreciation (17 CFR 210.12-28). - ![](https://asc.understandingaccounting.org/asc-img/GUID-3688D235-3280-413E-8798-4FA8CD8CD48D-low.gif) Reg. § 210.12-28 Real Estate and Accumulated Depreciation1 (For certain real estate companies) Column A Column B Column C Column D Column E Column F Column G Column H Column I Descriptions2 "Encum- brances " Initial cost to company "Cost capitalized subsequent to acquisition" "Gross amount of which carried at close of period 3,4,5,6,7" Accumulated depreciation Date of construc- tion Date acquired Life on which depreciation in latest statements of comprehensive income is computed Land Buildings and improvements "Improve- ments " Carrying costs Land Buildings and improvements Total 1 All money columns shall be totaled. 2 "The description for each property should include type of property (e.g., unimproved land, shopping center, garden apartments, etc.) and the geographical location." 3 The required information is to be given as to each individual investment included in column E except that an amount not exceeding 5 percent of the total of column E may be listed in one amount as “miscellaneous investments.” 4 "In a note to this schedule, furnish a reconciliation, in the following form, of the total amount at which real estate was carried at the beginning of each period for which statements of comprehensive income are required, with the total amount shown in column E: Balance at beginning of period .............................................................................................................................................. $ ............................ Additions during period: Acquisitions through foreclosure.............................................................................................. $............................... Other acquisitions........................................................................................................................................................ Improvements etc. ...................................................................................................................................................... Other (describe) ...............................................................................................................................................................$.................................. Deductions during period: ................................................................................................................... Cost of real estate sold ................................................................................................................ $ .............................. Other (describe) .......................................................................................................................................................... .............................. Balance at close of period ...................................................................................................................................................... $ ............................. " "If additions, except acquisitions through foreclosure, represent other than cash expenditures, explain. If any of the changes during the period result from transactions, directly or indirectly with affiliates, explain the bases of such transactions and state the amounts involved. A similar reconciliation shall be furnished for the accumulated depreciation." 5 "If any item of real estate investments has been written down or reserved against, describe the item and explain the basis for the write-down or reserve." 6 State in a note to column E the aggregate cost for Federal income tax purposes. 7 The amount of all intercompany profits included in the total of column E shall be stated if material. \[38 FR 6068, Mar. 6, 1983. Redesignated at 45 FR 63630, Sept. 25, 1980; 83 FR 50208, Oct. 4, 2018\]