# ASC 720-972-25: Other Expenses — Real Estate—Common Interest Realty Associations — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

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## ASC 720-972-25: 25 Recognition

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##### [720-972-25-1](https://asc.understandingaccounting.org/asc/720/972/#720-972-25-1)

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[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.") that use fund accounting shall charge expenditures for major repairs or replacements to the fund or funds established for major repairs or replacements. If an expenditure from the major repairs and replacement fund relates to [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 an asset, the amount expended shall be reported as a transfer to the operating fund (or property fund, if such a fund is established).