Real Estate—General

ASC 970 is the Real Estate—General industry Topic, and its Overall subtopic (970-10) simply maps where the industry guidance lives (cash flows, equity method/joint ventures, other assets and deferred costs, PP&E, debt, other expenses, consolidation, interest) and fixes the scope. The critical framing idea is that the Topic is only incremental: entities with productive activities relating to real property must apply all other applicable GAAP and look to ASC 970 only for industry-specific add-ons (970-10-15-1), and property used primarily in an entity's non-real estate operations is outside the scope (970-10-15-3). The guidance splits into three Subsections—General (real estate ventures, general and limited partnerships, corporate joint ventures, tax increment financing entities, investor-lender interest on loans/advances), Real Estate Syndication (income recognition), and Real Estate Project Costs (preacquisition, taxes and insurance, project costs, amenities, incidental operations, cost allocation, revisions of estimates, abandonments and changes in use, selling and rental costs, and impairment write-downs under the Subtopic 360-10 Impairment or Disposal of Long-Lived Assets Subsections) (970-10-05-4; 970-10-15-11). Students should also note the carve-outs in 970-10-15-8 and 15-9 and that ASU 2014-09 superseded the old real estate sales revenue guidance, moving it into Topic 606.

Subtopics

1. 10Overall21 ¶

   ASC 970-10 is the Overall subtopic of the Real Estate—General Topic; it maps the industry's guidance (statement of cash flows, equity method/joint ventures, other assets and deferred costs, PP&E, debt, other expenses, consolidation, interest) and sets the pervasive scope. The Topic supplies only incremental industry-specific guidance and applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations (970-10-15-3). Its guidance runs in three Subsections: General (real estate ventures, partnerships, joint ventures, tax increment financing entities), Real Estate Syndication (income recognition from syndication activities), and Real Estate Project Costs (acquisition, development, construction, selling and rental costs).

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