ASC

ASC 605-972

Real Estate—Common Interest Realty Associations

605 Revenue Recognition

Download JSONDownload Markdown8 paragraphs · 7 sectionsJump to summary

Source downloaded: .Record version e9f492c13dd6. Effective date must be checked in the source.

In brief

IntermediateRevenueIndustry-specificTransition and effective dates

ASC 605-972 formerly provided revenue recognition guidance for common interest realty associations (CIRAs), such as condominium and homeowners' associations, addressing assessments from members. Every paragraph in the subtopic — scope, recognition, presentation, and disclosure — was superseded by ASU 2014-09 (Revenue from Contracts with Customers). CIRA revenue transactions are now evaluated under ASC 606, with any surviving industry guidance located in ASC 606-10 or ASC 972.

Key points (5)
  • All paragraphs of ASC 605-972 (605-972-05-1, 15-1, 25-1, 45-1, 45-2, 50-1, 50-2) were superseded by Accounting Standards Update No. 2014-09.
  • Because the subtopic is fully superseded, it contains no operative recognition, presentation, or disclosure requirements for common interest realty associations.
  • Revenue arrangements of common interest realty associations, including member assessments, are now analyzed under the five-step model in ASC 606-10-25-1 and following.
  • Entities that had not yet adopted ASU 2014-09 applied the superseded ASC 605-972 guidance until the effective date and transition provisions in ASC 606-10-65-1 required otherwise.
  • Real estate industry-specific guidance for these associations that survived the revenue project resides in ASC 972, not in ASC 605.

For students. This subtopic is a shell: everything in it was wiped out by ASU 2014-09, so citing it as live authority is the classic mistake. For any current CIRA revenue question, go straight to ASC 606 (and ASC 972 for remaining real estate industry guidance).

common interest realty associationmember assessmentssuperseded guidancerevenue recognitioncondominium and homeowners associationstransition to asc 606

Machine-generated study aid for ASC 605-972. Check the source paragraphs below.

605-972-00Status

Source downloaded: .Record version d01db87e1837. Effective date must be checked in the source.

605-972-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Common Interest Realty AssociationSupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-05-1SupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-15-1SupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-25-1SupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-45-1SupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-45-2SupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-50-1SupersededAccounting Standards Update No. 2014-0905/28/2014
972-605-50-2SupersededAccounting Standards Update No. 2014-0905/28/2014

605-972-05Overview and Background

Source downloaded: .Record version 28511e6d1091. Effective date must be checked in the source.

605-972-15Scope and Scope Exceptions

Source downloaded: .Record version 923cf946d042. Effective date must be checked in the source.

605-972-20Glossary

Source downloaded: .Record version bf80daccfc71. Effective date must be checked in the source.

605-972-25Recognition

Source downloaded: .Record version 3d48de700692. Effective date must be checked in the source.

605-972-45Other Presentation Matters

Source downloaded: .Record version 46497f2894c9. Effective date must be checked in the source.

605-972-50Disclosure

Source downloaded: .Record version 9967c954689c. Effective date must be checked in the source.

Related subtopics