{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/840/974/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"840-974","topic":"840","title":"Real Estate—Real Estate Investment Trusts","area":"Broad Transactions","paragraphs":4,"summary":"This subtopic previously provided lease guidance specific to real estate investment trusts (REITs) within the legacy leases topic (ASC 840). All of its content — the overview (05-1), scope (15-1), and recognition (25-1) paragraphs — was superseded by ASU 2016-02, which replaced ASC 840 with ASC 842. There is accordingly no substantive guidance remaining here.","concepts":["superseded guidance","real estate investment trust","legacy lease accounting","leases transition","codification shell subtopic"],"categories":["Leases","Industry-specific","Transition and effective dates"],"level":"intermediate","topic_title":"Leases","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"840-974-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL77946343-209997\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Real Estate Investment Trust</strong></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Service Corporation</strong></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/840/974/#840-974-05-1\" class=\"xref\">974-840-05-1</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/840/974/#840-974-15-1\" class=\"xref\">974-840-15-1</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr><tr><td class=\"entry\"><a href=\"/asc/840/974/#840-974-25-1\" class=\"xref\">974-840-25-1</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a></td><td class=\"entry\">02/25/2016</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nReal Estate Investment Trust | Superseded | Accounting Standards Update No. 2016-02 | 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by Accounting Standards Update No. 2016-02</a> </div> </div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2016-02","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1d91b0c8249f50045c803343eef4a14cf844a096fde5c33a477165d02695b253","downloaded_from":"2026-09-10T01:55:00.701Z","last_downloaded_at":"2026-09-10T01:55:00.701Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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All of its content — the overview (05-1), scope (15-1), and recognition (25-1) paragraphs — was superseded by ASU 2016-02, which replaced ASC 840 with ASC 842. There is accordingly no substantive guidance remaining here.","key_points":["Every paragraph in this subtopic (840-974-05-1, 840-974-15-1, and 840-974-25-1) is marked 'Paragraph superseded by Accounting Standards Update No. 2016-02.'","ASU 2016-02 (Leases) superseded ASC 840 in its entirety, including this REIT-specific lease guidance, and replaced it with ASC 842.","Because no operative text remains, a REIT accounts for leases under ASC 842, with real-estate-specific considerations addressed in ASC 970 and 974 as applicable.","The subtopic is retained in the Codification only as a historical shell; it may still be relevant when analyzing pre-adoption financial statements or transition disclosures."],"categories":["Leases","Industry-specific","Transition and effective dates"],"audience_level":"intermediate","student_note":"Don't hunt for a special REIT lease rule here — the whole subtopic is superseded, and current REIT lease questions are answered by ASC 842. The common misunderstanding is assuming a superseded subtopic still carries industry-specific exceptions; it does not, though it can matter for comparative pre-adoption periods.","related_topics":["842","840","974","970","842-10"],"key_concepts":["superseded guidance","real estate investment trust","legacy lease accounting","leases transition","codification shell subtopic"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d457a5fdb6539f4bb98dbad4859b2286a0c61f227e09cabbd2017548ac156e7f","downloaded_from":"2026-09-10T01:54:50.132Z","last_downloaded_at":"2026-09-10T01:55:00.701Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"840-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Leases","score":0.8534,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cba9a710234d47554df2d74ea74d536ef223616f81680ac2743998563da7b6c8","downloaded_from":"2026-09-10T01:55:04.614Z","last_downloaded_at":"2026-09-10T01:55:15.312Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"840-958","title":"Not-for-Profit Entities","topic_title":"Leases","score":0.836,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b93dbef428ca14676751cb4f2481f582d450800365675ddc48533da52feb9bfb","downloaded_from":"2026-09-10T01:54:34.340Z","last_downloaded_at":"2026-09-10T01:54:46.899Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"605-974","title":"Real Estate—Real Estate Investment Trusts","topic_title":"Revenue Recognition","score":0.8249,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aafbec5658bb2d3b9ffc8f30fc5173da84795e9347ddc4ce782e1f2bee9de6f1","downloaded_from":"2026-09-10T00:52:43.805Z","last_downloaded_at":"2026-09-10T00:53:03.099Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"840-980","title":"Regulated Operations","topic_title":"Leases","score":0.8129,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5c498e88c0eac615fe3bbddcdd297acc7ef405005fc51f9ce3153324d9ff3f7d","downloaded_from":"2026-09-10T01:55:18.640Z","last_downloaded_at":"2026-09-10T01:55:41.940Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by 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