ASC

ASC 705-976

Real Estate—Retail Land

705 Cost of Sales and Services

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In brief

IntermediateInitial measurementRevenueIndustry-specific

ASC 705-976 addresses the measurement of costs related to retail land sales, using the same scope as the Real Estate—Retail Land Overall Subtopic (976-10-15). Its substantive initial measurement guidance was superseded by ASU 2014-09, so the Subtopic now simply directs preparers to Subtopic 340-40 for incremental costs of obtaining a contract with a customer and costs to fulfill a contract.

Key points (4)
  • 705-976-05-1: The Subtopic provides measurement guidance concerning the cost of retail land sales.
  • 705-976-15-1: Scope follows the Overall Subtopic scope in Section 976-10-15 (retail land sales).
  • 705-976-30-1: The former initial measurement paragraph was superseded by ASU 2014-09 (the revenue recognition standard).
  • 705-976-30-2: Costs of obtaining and fulfilling a contract with a customer are now accounted for under Subtopic 340-40, not under industry-specific retail land guidance.

For students. This subtopic is essentially a pointer: after ASU 2014-09, retail land sellers no longer have specialized cost-of-sales measurement rules and must apply ASC 340-40's contract cost model. The common mistake is citing legacy retail land cost allocation guidance that has been superseded.

retail land salescost of salesincremental costs of obtaining a contractcosts to fulfill a contractreal estate industry guidancesuperseded guidance

Machine-generated study aid for ASC 705-976. Check the source paragraphs below.

705-976-00Status

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705-976-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Full Accrual MethodSupersededAccounting Standards Update No. 2014-0905/28/2014
976-705-30-1SupersededAccounting Standards Update No. 2014-0905/28/2014
976-705-30-2AmendedAccounting Standards Update No. 2014-0905/28/2014

705-976-05Overview and Background

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705-976-05-1
This Subtopic provides measurement guidance concerning the cost of retail land sales.

705-976-15Scope and Scope Exceptions

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Overall Guidance

705-976-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 976-10-15.

705-976-20Glossary

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705-976-30Initial Measurement

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705-976-30-2
See Subtopic 340-40 for guidance on incremental costs of obtaining a contract with a customer and costs to fulfill a contract.

Related subtopics