# ASC 970-10-15: Real Estate—General — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:419961c92aaf0c4d81ea2dd58265df433794138bb801c0a69a998ad84f531285 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 970-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [970-10-15-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:2e5d99c9ff195254e9169775cd2e5aa8bc09ce0f22d3b9b920e3a2488954677f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [970-10-15-2](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:5ffff8f319b5737d2068e4b36a921d06e8a018ef0b57662d353389efc07bc2cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope for this Subtopic, with specific qualifications noted in the other Subsections of this Section. #### Entities ##### [970-10-15-3](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:540f9ddcd81eb4d25747828772028dad751a382c6c1022e3e6cd33a688166d64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ### Real Estate Syndication #### Overall Guidance ##### [970-10-15-4](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:b632fad1a735c828c819cdecb76dbedd07fd4e7beaf8c9dd5fd17d92a415baf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate Syndication Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions)of Section 970-10-15, with specific qualifications noted below. #### Entities ##### [970-10-15-5](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:639695fb239c4edee29f3230bc9a40211c705339ae5655c9590a1731e0ae9949 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ### Real Estate Project Costs #### Overall Guidance ##### [970-10-15-6](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:1016332e79b4b4b7b61944636f93e780dcd2306954743e5ba71c5a8438de051a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate [Project Costs](https://asc.understandingaccounting.org/glossary/p/#project-costs "Costs clearly associated with the acquisition, development, and construction of a real estate project.") Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see the [General Subsection](https://asc.understandingaccounting.org/asc/970/10/#15-scope-and-scope-exceptions) of Section 970-10-15, with specific qualifications noted below. #### Entities ##### [970-10-15-7](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:31254acb0acaba6ab4010f79991fa4f9610a109b61c5cb8161c2d74803d8206e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Transactions ##### [970-10-15-8](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:a22409e2cc1c10b6fb5d6a7ad243399476aa959aa9e95496e0b3550f7e5593e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [970-10-15-9](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:18181fbbdab385c2ae7857eb7ef31f8ccd4877d96efea93b70f90662d1e15b2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [970-340-25-16 through 25-19](https://asc.understandingaccounting.org/asc/340/970/#340-970-25-16) and [970-340-35-2](https://asc.understandingaccounting.org/asc/340/970/#340-970-35-2) do not apply to real estate rental activity in which the predominant rental period is less than one month. ##### [970-10-15-10](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:d836d30378a840635fc855dbdf415c45b8ba8e52c09abab760114ce8acc9bf2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [970-10-15-11](https://asc.understandingaccounting.org/asc/970/10/#970-10-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:59.069Z to 2026-09-10T02:25:59.069Z Record version: sha256:76a55c8aeb8a2cedbcf4e32ffc2f204d24222c46eaae2a091b802f190908ec28 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subsection specifies the accounting for the following as they relate to real estate projects: 1. a [Preacquisition costs](https://asc.understandingaccounting.org/glossary/p/#preacquisition-costs "Costs related to a property that are incurred for the express purpose of, but prior to, obtaining that property. Examples of preacquisition costs may be costs of surveying, zoning or traffic studies, or payments to obtain an option on the property.") 2. b Taxes and insurance 3. c Project costs 4. d [Amenities](https://asc.understandingaccounting.org/glossary/a/#amenities "Features that enhance the attractiveness or perceived value of a time-sharing interval. Examples of amenities include golf courses, utility plants, clubhouses, swimming pools, tennis courts, indoor recreational facilities, and parking facilities. See also Promised Amenities.") 5. e [Incidental operations](https://asc.understandingaccounting.org/glossary/i/#incidental-operations "Revenue-producing activities engaged in during the holding or development period to reduce the cost of developing the property for its intended use, as distinguished from activities designed to generate a profit or a return from the use of the property.") 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.