ASC

ASC 605-970

Real Estate—General

605 Revenue Recognition

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In brief

IntroductoryRevenueTransition and effective datesIndustry-specificDerecognition

ASC 605-970 formerly provided the legacy revenue recognition guidance for real estate—general transactions (including profit recognition and measurement on real estate sales). Every paragraph in the subtopic — Sections 05, 15, 25, 30, 35, and 55 — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). No substantive guidance remains; entities apply ASC 606 (and ASC 610-20 for sales of nonfinancial assets to noncustomers) instead.

Key points (5)
  • All paragraphs of ASC 605-970 (605-970-05-1 through 05-11, 15-1 through 15-7, 25-1 through 25-7, 30-1 through 30-12, 35-1 through 35-8, and 55-1 through 55-20) were superseded by Accounting Standards Update No. 2014-09.
  • Because the subtopic is fully superseded, it imposes no recognition, measurement, presentation, or disclosure requirements on current financial statements.
  • Revenue from contracts with customers involving real estate is now accounted for under ASC 606; the subtopic remains in the Codification only as a historical marker.
  • Sales or transfers of real estate that are not contracts with customers fall under ASC 610-20 (gains and losses from the derecognition of nonfinancial assets), not this superseded subtopic.
  • The superseded text may still matter only for periods before an entity's adoption of ASU 2014-09 or for understanding transition adjustments.

For students. Don't cite ASC 605-970 as live authority — it is an empty shell of superseded paragraphs; the common error is treating legacy real estate revenue rules (e.g., percentage-of-completion or deposit methods) as still governing rather than applying ASC 606 or ASC 610-20.

superseded guidancereal estate salesrevenue recognitiontransition to asc 606legacy gaap

Machine-generated study aid for ASC 605-970. Check the source paragraphs below.

605-970-00Status

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605-970-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Assumption Superseded Accounting Standards Update No. 2014-09 05/28/2014
Blind Pool or Partially Blind Pool Partnerships Superseded Accounting Standards Update No. 2014-09 05/28/2014
Flip Transactions Superseded Accounting Standards Update No. 2014-09 05/28/2014
General Partnership Superseded Accounting Standards Update No. 2014-09 05/28/2014
Investor Notes Superseded Accounting Standards Update No. 2014-09 05/28/2014
Limited Partnership Superseded Accounting Standards Update No. 2014-09 05/28/2014
Ownership Interests Superseded Accounting Standards Update No. 2014-09 05/28/2014
Partnership Notes Superseded Accounting Standards Update No. 2014-09 05/28/2014
Project Costs Superseded Accounting Standards Update No. 2014-09 05/28/2014
Syndication Activities Superseded Accounting Standards Update No. 2014-09 05/28/2014
Syndication Fees Superseded Accounting Standards Update No. 2014-09 05/28/2014
970-605-05-1 through 05-11
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
970-605-15-1 through 15-7
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
970-605-25-1 through 25-7
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
970-605-30-1 through 30-12
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
970-605-35-1 through 35-8
 Superseded Accounting Standards Update No. 2014-09 05/28/2014
970-605-55-1 through 55-20
 Superseded Accounting Standards Update No. 2014-09 05/28/2014

605-970-05Overview and Background

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Real Estate Syndication

Real Estate Project Costs

605-970-15Scope and Scope Exceptions

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Real Estate Syndication

Real Estate Project Costs

605-970-20Glossary

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605-970-25Recognition

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Real Estate Project Costs

Real Estate Syndication

605-970-30Initial Measurement

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Real Estate Syndication

605-970-35Subsequent Measurement

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Real Estate Syndication

605-970-55Implementation Guidance and Illustrations

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Real Estate Syndication

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