{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions","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.","topic":"970","topic_title":"Real Estate—General","subtopic":"970-10","subtopic_title":"Overall","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"970-10-15-1","para":"15-1","html":"
The Subtopics within the Real Estate—General Topic only provide incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.
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The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific qualifications noted in the other Subsections of this Section.
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The guidance in this Topic applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations.
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The Real Estate Syndication Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see the General Subsectionof Section 970-10-15, with specific qualifications noted below.
","snippet":"The Real Estate Syndication Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see the General Subsectionof Section 970-10-15, with specific qualifications note…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b632fad1a735c828c819cdecb76dbedd07fd4e7beaf8c9dd5fd17d92a415baf4","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:772c456aef7e99c1fca63d8ad8751bedaf98a070d564ed67565d1fb3c5e0bc07","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},{"block":"Real Estate Syndication","heading":"Entities","paragraphs":[{"citation":"970-10-15-5","para":"15-5","html":"
The guidance in this Topic applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations.
","snippet":"The guidance in this Topic applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:639695fb239c4edee29f3230bc9a40211c705339ae5655c9590a1731e0ae9949","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f192a76277b28721a450d35ac12424322165423bb3017821aadde6f6f034e7f3","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},{"block":"Real Estate Project Costs","heading":"Overall Guidance","paragraphs":[{"citation":"970-10-15-6","para":"15-6","html":"
The Real Estate Project Costs Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see the General Subsection of Section 970-10-15, with specific qualifications noted below.
","snippet":"The Real Estate Project Costs Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see the General Subsection of Section 970-10-15, with specific qualifications n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1016332e79b4b4b7b61944636f93e780dcd2306954743e5ba71c5a8438de051a","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:47d00451d579ea0f4e05b330b4433de9587a70d5b5d1ba984af036089e995780","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},{"block":"Real Estate Project Costs","heading":"Entities","paragraphs":[{"citation":"970-10-15-7","para":"15-7","html":"
The guidance in the Real Estate Project Costs Subsections applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations.
","snippet":"The guidance in the Real Estate Project Costs Subsections applies to all entities with productive activities relating to real property, excluding property used primarily in the entity's non-real estate operations.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31254acb0acaba6ab4010f79991fa4f9610a109b61c5cb8161c2d74803d8206e","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2081cd73e806b50c9e79d9d133dabf08ddac255e59f40c8775a1b3c5ed043347","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},{"block":"Real Estate Project Costs","heading":"Transactions","paragraphs":[{"citation":"970-10-15-8","para":"15-8","html":"
The guidance in the Real Estate Project Costs Subsections does not apply to the following transactions and activities:
  1. a
    Real estate developed by an entity for use in its own operations, other than for sale or rental. In this context, real estate developed by a member of a consolidated group for use in the operations of another member of the group (for example, a manufacturing facility developed by a subsidiary for use in its parent's operations) when the property is reported in the group's consolidated financial statements. However, this does not include property reported in the separate financial statements of the entity that developed it.
  2. b
    Initial direct costs of leases, which are defined in Topic 842. The accounting for initial direct costs of leases is prescribed in that Topic.
  3. c
    Costs directly related to manufacturing, merchandising, or service activities as distinguished from real estate activities.
","snippet":"The guidance in the Real Estate Project Costs Subsections does not apply to the following transactions and activities:\n(a) Real estate developed by an entity for use in its own operations, other than for sale or rental. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a22409e2cc1c10b6fb5d6a7ad243399476aa959aa9e95496e0b3550f7e5593e9","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},{"citation":"970-10-15-9","para":"15-9","html":"
Paragraphs
970-340-25-16 through 25-19
and 970-340-35-2 do not apply to real estate rental activity in which the predominant rental period is less than one month.
","snippet":"Paragraphs 970-340-25-16 through 25-19 and 970-340-35-2 do not apply to real estate rental activity in which the predominant rental period is less than one month.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18181fbbdab385c2ae7857eb7ef31f8ccd4877d96efea93b70f90662d1e15b2a","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},{"citation":"970-10-15-10","para":"15-10","html":"
Paragraph superseded by Accounting Standards Update No. 2014-09.
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This Subsection specifies the accounting for the following as they relate to real estate projects:
  1. a
    Preacquisition costs
  2. b
    Taxes and insurance
  3. c
    Project costs
  4. d
    Amenities
  5. e
    Incidental operations
  6. f
    Allocation of capitalized costs to components of a real estate project
  7. g
    Revisions of estimates
  8. h
    Abandonments and changes in use
  9. i
    Selling costs
  10. j
    Rental costs
  11. k
    Reductions in the carrying amounts of real estate assets prescribed by the Impairment or Disposal of Long-Lived Assets Subsections of Subtopic 360-10.
","snippet":"This Subsection specifies the accounting for the following as they relate to real estate projects:\n(a) Preacquisition costs\n(b) Taxes and insurance\n(c) Project costs\n(d) Amenities\n(e) Incidental operations\n(f) Allocation…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76a55c8aeb8a2cedbcf4e32ffc2f204d24222c46eaae2a091b802f190908ec28","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:089a2e4c91a3a8d059227dfb9bdb039a40d494bed4ae3ff0f3f09650f15d87d1","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:419961c92aaf0c4d81ea2dd58265df433794138bb801c0a69a998ad84f531285","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:419961c92aaf0c4d81ea2dd58265df433794138bb801c0a69a998ad84f531285","downloaded_from":"2026-09-10T02:25:59.069Z","last_downloaded_at":"2026-09-10T02:25:59.069Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482141","source_sha256":"2288f3690d0b509dfd5db550ed2ce41784f73d0762346b5f1c9e56718a8df5d5"}}