# ASC 360-972: Property, Plant, and Equipment — Real Estate—Common Interest Realty Associations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/972/) 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): 2026-09-10T00:12:38.565Z to 2026-09-10T00:12:59.332Z Record version: sha256:2fcb32fc2c407e5c1046b938f358110193d6a6b0152a12192d532b5854ddb11a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972: Property, Plant, and Equipment — Real Estate—Common Interest Realty Associations ### Machine-generated study aids ```json { "summary": "This Subtopic tells common interest realty associations (CIRAs) — cooperatives, condominium associations, and homeowners associations — when to recognize common real and personal property as assets, how to measure it, and what to disclose. Cooperatives recognize all common real property because they hold title and can dispose of it and keep the proceeds; other CIRAs generally do not recognize real property directly associated with the units, and recognize property not directly associated with the units only if they have title or other evidence of ownership plus disposal discretion or significant cash-flow generation. Recognized property is measured at cost (or fair value if acquired in a nonmonetary transaction such as a developer transfer) and depreciated over estimated useful lives.", "key_points": [ "Cooperatives shall recognize common real property as assets because they hold title and can dispose of it and retain the proceeds (360-972-25-1).", "Most non-cooperative CIRAs do not recognize as assets real property directly associated with the units, whether or not they hold title (360-972-25-2).", "Non-cooperative CIRAs recognize real property not directly associated with the units when they have title or other evidence of ownership and either (a) the board may dispose of it for cash and retain the proceeds or (b) it generates significant cash flows from members based on usage or from nonmembers (360-972-25-3); some CIRAs recognize all such titled property regardless of those conditions (360-972-25-4).", "Common personal property used in operating, preserving, maintaining, repairing, and replacing common property — furnishings, recreational and maintenance equipment, work vehicles — shall be recognized as assets (360-972-25-5).", "Recognized common property is initially measured at cost if acquired in a monetary transaction, or at fair value at the acquisition date if acquired in a nonmonetary transaction such as a nonreciprocal transfer from the developer (the developer's cost may help estimate fair value) (360-972-30-1).", "Property and equipment recognized as assets shall be depreciated over estimated useful lives (360-972-35-1).", "Required disclosures include the recognition and measurement policy, descriptions of common property both recognized and not recognized, the CIRA's maintenance responsibility, land/recreation lease terms, use and disposition restrictions (360-972-50-1), and depreciation expense, major classes of depreciable assets, accumulated depreciation, and depreciation methods (360-972-50-3); all property owned by a cooperative is presented on its balance sheet (360-972-50-2)." ], "categories": [ "Recognition", "Initial measurement", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "The key exam trap is assuming that holding legal title automatically means the association records the asset: for condos and HOAs, property directly associated with the units is generally not recognized, and other titled property is recognized only if the board can sell it and keep the proceeds or it generates significant cash flows. Note also the cost vs. fair value split for developer-donated (nonmonetary) property.", "related_topics": [ "972-10", "972-235", "972-605", "360-10", "845", "820" ], "key_concepts": [ "common interest realty association", "common real property", "common personal property", "cooperative", "title or other evidence of ownership", "nonreciprocal transfer from developer", "depreciation of common property", "future major repairs and replacements" ] } ``` Source downloaded (UTC): 2026-09-10T00:12:38.565Z to 2026-09-10T00:12:38.565Z Record version: sha256:df9d4158e6ec04b30dcc0373a0c668f6bc60c5b169bd43b8e1c9ae7f93022b3a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/972/#00-status) SEC content: no ##### [360-972-00-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:38.565Z to 2026-09-10T00:12:38.565Z Record version: sha256:736d9be6591f611234be77428417d34520a3924ebaaf9bafada8e74e0bebd62f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No updates have been made to this subtopic.
ParagraphActionAccounting Standards UpdateDate
Nonreciprocal TransferAddedMaintenance Update 2014-20 (PDF)09/29/2014
972-360-30-1AmendedMaintenance Update 2014-20 (PDF)09/29/2014
Source downloaded (UTC): 2026-09-10T00:12:42.588Z to 2026-09-10T00:12:42.588Z Record version: sha256:a1e28d9e70ed76685af7f59372f3b85bf03fadad7157e68665d13df5817721a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/972/#05-overview-and-background) SEC content: no ##### [360-972-05-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:42.588Z to 2026-09-10T00:12:42.588Z Record version: sha256:ef85b9bc72eb096a8d875c181fa1ef124c692f72b53794c984b549f7ccaaa0b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses recognition and disclosure issues for common real and personal property related to [common interest realty associations](https://asc.understandingaccounting.org/glossary/c/#common-interest-realty-association "An association, also known as a community association, responsible for the governance of the common interest community, for which it was established to serve. A common interest realty association is generally funded by its members via periodic assessments by the common interest realty association so that it can perform its duties, which include management services and maintenance, repair, and replacement of the common property, among other duties established in the governing documents and by state statute."). Source downloaded (UTC): 2026-09-10T00:12:46.242Z to 2026-09-10T00:12:46.242Z Record version: sha256:e781def29f95837f96a04bac11d02b8aed2e1b54de0c4ecc0c772bab8e97a799 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/360/972/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [360-972-15-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:46.242Z to 2026-09-10T00:12:46.242Z Record version: sha256:91fc906da6ccd565cf867f0ab2517a35740d479c503de818d0edaaae13d44ac8 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 972-10-15. Source downloaded (UTC): 2026-09-10T00:12:51.245Z to 2026-09-10T00:12:51.245Z Record version: sha256:23b305a1ef1afb90b7ea0a9b300181ad99459e6ba166548ac121c569fc295529 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/360/972/#25-recognition) SEC content: no #### Common Real Property ##### [360-972-25-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:51.245Z to 2026-09-10T00:12:51.245Z Record version: sha256:0eccc2841968fad40e2f3dc829c668362d6ca427d74357d4afdad134ff413966 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Cooperatives shall recognize common real property as assets. Because of their legal structure, cooperatives have title to all their [common property](https://asc.understandingaccounting.org/glossary/c/#common-property "A common interest realty association's real or personal property to which title or other evidence of ownership is held by either: Individual members in common The common interest realty association directly.") and have the authority to dispose of it and retain the proceeds. Other [common interest realty associations](https://asc.understandingaccounting.org/glossary/c/#common-interest-realty-association "An association, also known as a community association, responsible for the governance of the common interest community, for which it was established to serve. A common interest realty association is generally funded by its members via periodic assessments by the common interest realty association so that it can perform its duties, which include management services and maintenance, repair, and replacement of the common property, among other duties established in the governing documents and by state statute."), such as [condominiums](https://asc.understandingaccounting.org/glossary/c/#condominium "A form of ownership of real property that combines exclusive ownership of a defined space and an undivided interest in the common elements. (Also referred to as a condo.) A common interest realty association is not a condominium unless the undivided interests in the common elements are vested in the unit owners.") and [homeowners associations](https://asc.understandingaccounting.org/glossary/h/#homeowners-association "See Association."), have adopted other practices for recognizing common real property. #### Real Property Directly Associated with the Units ##### [360-972-25-2](https://asc.understandingaccounting.org/asc/360/972/#360-972-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:51.245Z to 2026-09-10T00:12:51.245Z Record version: sha256:6869881c97cc8ec86e81588e3f6d2446edb5dd784cdacb69de12252d8c2c3a3b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Most common interest realty associations other than cooperatives, regardless of whether they have title, do not recognize as assets real property directly associated with the units. #### Real Property Not Directly Associated with the Units ##### [360-972-25-3](https://asc.understandingaccounting.org/asc/360/972/#360-972-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:51.245Z to 2026-09-10T00:12:51.245Z Record version: sha256:d5a7927f65197cece2671eee7d123e72a3de489a39f41b960d5f05c674f2dbdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Most common interest realty associations other than cooperatives recognize real property not directly associated with the units as assets when the common interest realty association has title or other evidence of ownership of the property and any of the following conditions are met: 1. a The common interest realty association can dispose of the property, at the discretion of its board of directors, for cash or claims to cash, with the common interest realty association retaining the proceeds. 2. b The property is used by the common interest realty association to generate significant cash flows from members on the basis of usage or from nonmembers. ##### [360-972-25-4](https://asc.understandingaccounting.org/asc/360/972/#360-972-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:51.245Z to 2026-09-10T00:12:51.245Z Record version: sha256:4942f673aecfa8f032c501d68513c148db86c78ce18372877436a3490bf77c4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, some common interest realty associations recognize as assets all real property to which they have title or other evidence of ownership and that is not directly associated with the units, regardless of whether either of the above conditions is met. #### Personal Property ##### [360-972-25-5](https://asc.understandingaccounting.org/asc/360/972/#360-972-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:51.245Z to 2026-09-10T00:12:51.245Z Record version: sha256:96fdb5704f970a96c190bc0728b9c3ce09e4542c811e0737242fe68e6f0a03b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Common interest realty associations shall recognize common personal property, such as furnishings, recreational equipment, maintenance equipment, and work vehicles, that is used by the common interest realty association in operating, preserving, maintaining, repairing, and replacing common property and providing other services, as assets. Source downloaded (UTC): 2026-09-10T00:12:54.101Z to 2026-09-10T00:12:54.101Z Record version: sha256:cdf6e0131f6c4f3bc3b0bab9f23c984d1758a1209307cf22f4ea3060f103caf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/360/972/#30-initial-measurement) SEC content: no ##### [360-972-30-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:54.101Z to 2026-09-10T00:12:54.101Z Record version: sha256:e54028775b0938c2697fc4354619949f692d095d747771d385213d10fbd9ed6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Common property](https://asc.understandingaccounting.org/glossary/c/#common-property "A common interest realty association's real or personal property to which title or other evidence of ownership is held by either: Individual members in common The common interest realty association directly.") recognized as assets of a [common interest realty association](https://asc.understandingaccounting.org/glossary/c/#common-interest-realty-association "An association, also known as a community association, responsible for the governance of the common interest community, for which it was established to serve. A common interest realty association is generally funded by its members via periodic assessments by the common interest realty association so that it can perform its duties, which include management services and maintenance, repair, and replacement of the common property, among other duties established in the governing documents and by state statute.") shall be initially measured at the common interest realty association's cost to acquire it if the common interest realty association acquired the property in a monetary transaction. If the common interest realty association acquired the property in a nonmonetary transaction, such as by a [nonreciprocal transfer](https://asc.understandingaccounting.org/glossary/n/#nonreciprocal-transfer "Nonreciprocal transfer is a transfer of assets or services in one direction, either from an entity to its owners (whether or not in exchange for their ownership interests) or to another entity, or from owners or another entity to the entity. An entity's reacquisition of its outstanding stock is an example of a nonreciprocal transfer.") from the developer, and if the property is recognized as an asset of the common interest realty association, the common interest realty association shall initially measure the property using fair value at the date of its acquisition. It may be helpful to consider the developer's cost, if it is known, in determining the fair value. Source downloaded (UTC): 2026-09-10T00:12:56.310Z to 2026-09-10T00:12:56.310Z Record version: sha256:8a67fa31b45ff5858b614d15c5304eda573416fdf5bd412b544400f36e882e8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/972/#35-subsequent-measurement) SEC content: no ##### [360-972-35-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:56.310Z to 2026-09-10T00:12:56.310Z Record version: sha256:0c37faae2c23fd91e0c2f806bd931bda2c0deda94dcb2103d8972b20b1375ba8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Property and equipment recognized as assets by common interest realty associations shall be depreciated based on their estimated useful lives. Source downloaded (UTC): 2026-09-10T00:12:59.332Z to 2026-09-10T00:12:59.332Z Record version: sha256:d8cf552c692366ff34819f8f3e8981723f9674bda9d78eafa090e2a24549e4f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-972-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/360/972/#50-disclosure) SEC content: no #### General Information ##### [360-972-50-1](https://asc.understandingaccounting.org/asc/360/972/#360-972-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:59.332Z to 2026-09-10T00:12:59.332Z Record version: sha256:0cd6ff67d6912dc81951e49e9ecd0e73ee54b94c990b7af7208ddd11b5fa70dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All of the following information about a [common interest realty association's](https://asc.understandingaccounting.org/glossary/c/#common-interest-realty-association "An association, also known as a community association, responsible for the governance of the common interest community, for which it was established to serve. A common interest realty association is generally funded by its members via periodic assessments by the common interest realty association so that it can perform its duties, which include management services and maintenance, repair, and replacement of the common property, among other duties established in the governing documents and by state statute.") [common property](https://asc.understandingaccounting.org/glossary/c/#common-property "A common interest realty association's real or personal property to which title or other evidence of ownership is held by either: Individual members in common The common interest realty association directly.") shall be disclosed in the notes to its financial statements: 1. a The accounting policy for recognition and measurement of common property 2. b A description of common property recognized as assets in the common interest realty association's balance sheet 3. c A description of common property to which the common interest realty association has title, or other evidence of ownership, that is not recognized as assets in the common interest realty association's balance sheet 4. d The common interest realty association's responsibility to preserve and maintain the common property 5. e Terms and conditions of existing land or recreation leases 6. f Restrictions on the use or disposition of the common property. ##### [360-972-50-2](https://asc.understandingaccounting.org/asc/360/972/#360-972-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:59.332Z to 2026-09-10T00:12:59.332Z Record version: sha256:9dfece82fbb73bb63e226145449b26d70c291154e386fb19d95687f9fd0f44e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All property owned by a cooperative shall be presented on its balance sheets. Cooperatives generally own the real estate and have the ability to borrow and pledge their assets as collateral. Some cooperatives, therefore, do not accumulate funds for future major repairs and replacements. #### Depreciation ##### [360-972-50-3](https://asc.understandingaccounting.org/asc/360/972/#360-972-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:12:59.332Z to 2026-09-10T00:12:59.332Z Record version: sha256:78bf7be280c0ce4bec0f9236d72e39d8ba93915f786f9dec66dd825d5f16081a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For property and equipment recognized as assets by common interest realty associations the following information shall be disclosed: 1. a Depreciation expense for the period 2. b Balances of major classes of depreciable assets, by nature or function, at the reporting date 3. c Accumulated depreciation, either by major classes of depreciable assets or in total, at the reporting date 4. d A general description of the method or methods used in computing depreciation for major classes of depreciable assets.