# ASC 810-910: Consolidation — Contractors—Construction

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/810/910/)

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## ASC 810-910: Consolidation — Contractors—Construction

### Machine-generated study aids

```json
{
  "summary": "This Subtopic addresses consolidation issues for construction contractors, principally the availability of proportionate gross presentation for investments in unincorporated entities (such as construction joint ventures) that are accounted for under the equity method. Per 810-910-45-1, referencing 810-10-45-14, proportionate gross presentation is generally prohibited for equity-method investments in unincorporated legal entities, but an exception exists when the investee operates in the construction industry (or an extractive industry). Its scope follows that of Subtopic 910-10 (see 910-10-15).",
  "key_points": [
    "This Subtopic provides guidance on consolidation by a construction contractor (810-910-05-1).",
    "The scope is the same as the Contractors—Construction Overall Subtopic, Section 910-10-15 (810-910-15-1).",
    "Under 810-10-45-14, proportionate gross financial statement presentation is not appropriate for an investment in an unincorporated legal entity accounted for under the equity method, except where the investee is in the construction industry or an extractive industry (810-910-45-1).",
    "The extractive-industry parallels to this exception are found at 930-810-45-1 (mining) and 932-810-45-1 (oil and gas) (810-910-45-1)."
  ],
  "categories": [
    "Consolidation",
    "Presentation",
    "Industry-specific",
    "Financial statement presentation"
  ],
  "audience_level": "intermediate",
  "student_note": "The exam point is narrow: proportionate (pro rata) gross presentation of an equity-method investee is a rare exception limited to unincorporated construction and extractive-industry ventures. Students often wrongly assume proportionate consolidation is generally available for any jointly controlled operation, or that it applies to incorporated joint ventures.",
  "related_topics": [
    "810-10",
    "910-10",
    "930-810",
    "932-810",
    "323-10"
  ],
  "key_concepts": [
    "proportionate gross presentation",
    "equity method",
    "unincorporated legal entity",
    "construction joint venture",
    "consolidation",
    "industry exception",
    "construction contractor"
  ]
}
```

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## ASC 810-910-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/810/910/#05-overview-and-background)

SEC content: no

##### [810-910-05-1](https://asc.understandingaccounting.org/asc/810/910/#810-910-05-1)

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This Subtopic provides guidance on consolidation by a construction contractor.

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## ASC 810-910-15: 15 Scope and Scope Exceptions

[Read section](https://asc.understandingaccounting.org/asc/810/910/#15-scope-and-scope-exceptions)

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#### Overall Guidance

##### [810-910-15-1](https://asc.understandingaccounting.org/asc/810/910/#810-910-15-1)

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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 910-10-15.

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## ASC 810-910-45: 45 Other Presentation Matters

[Read section](https://asc.understandingaccounting.org/asc/810/910/#45-other-presentation-matters)

SEC content: no

##### [810-910-45-1](https://asc.understandingaccounting.org/asc/810/910/#810-910-45-1)

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Paragraph [810-10-45-14](https://asc.understandingaccounting.org/asc/810/10/#810-10-45-14) explains that a proportionate gross financial statement presentation is not appropriate for an investment in an unincorporated legal entity accounted for by the equity method of accounting unless the investee is in either the construction industry (as discussed in this Topic) or an extractive industry (see paragraphs [930-810-45-1](https://asc.understandingaccounting.org/asc/810/930/#810-930-45-1) and [932-810-45-1](https://asc.understandingaccounting.org/asc/810/932/#810-932-45-1)).