# ASC 970-10: Real Estate—General — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/970/10/) 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): 2026-09-10T02:25:52.021Z to 2026-09-10T02:26:12.373Z Record version: sha256:819aca8f76ed447ae68869e3ad5bccd8a831e247036ee7ed9d195ebbb9334c4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 970-10: Real Estate—General — Overall ### Machine-generated study aids ```json { "summary": "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).", "key_points": [ "Entities in the scope of this Topic must also comply with all other applicable GAAP; the Topic supplies only incremental industry-specific guidance (970-10-15-1).", "Scope covers all entities with productive activities relating to real property but excludes property used primarily in the entity's non-real estate operations (970-10-15-3, 15-5, 15-7).", "The Real Estate Project Costs Subsections do not apply to real estate developed by an entity for use in its own operations (other than for sale or rental), initial direct costs of leases (governed by Topic 842), or costs directly related to manufacturing, merchandising, or service activities (970-10-15-8).", "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 (970-10-15-9).", "The Project Costs Subsections address preacquisition costs, taxes and insurance, project costs, amenities, incidental operations, cost allocation to project components, revisions of estimates, abandonments and changes in use, selling costs, rental costs, and impairment write-downs under the Subtopic 360-10 Impairment or Disposal of Long-Lived Assets Subsections (970-10-15-11).", "The General Subsections cover real estate ventures, general and limited partnerships, corporate joint ventures, tax increment financing entities, and investor-lender accounting for interest on loans or advances to a real estate venture (970-10-05-4); limited liability companies are addressed at 272-10-05.", "Several former subtopics and paragraphs (e.g., 970-10-05-2(c) and (h), 970-10-15-10) were superseded by ASU 2014-09, moving real estate sales revenue into Topic 606." ], "categories": [ "Industry-specific", "Inventory and PP&E", "Recognition", "Initial measurement" ], "audience_level": "intermediate", "student_note": "This subtopic is mostly a roadmap and scope gate—know what it excludes (owner-occupied development, lease initial direct costs under 842, non-real-estate manufacturing/service costs) before applying the capitalization rules in 970-340 and 970-360. A common misunderstanding is thinking 970 is a self-contained rulebook; it is only incremental guidance layered on top of general GAAP, and ASU 2014-09 pulled real estate sales recognition out into Topic 606.", "related_topics": [ "970-340", "970-360", "970-323", "360-10", "606", "842" ], "key_concepts": [ "real estate project costs", "productive activities relating to real property", "real estate syndication", "preacquisition costs", "capitalization of rental and selling costs", "real estate ventures and joint ventures", "incidental operations", "amenities" ] } ``` Source downloaded (UTC): 2026-09-10T02:25:52.021Z to 2026-09-10T02:25:52.021Z Record version: sha256:6b9c33ec287735e72dfade50ff133bb30f122cee76d0c3d3d1e18c6bb1e02928 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 970-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/970/10/#00-status) SEC content: no ##### [970-10-00-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:52.021Z to 2026-09-10T02:25:52.021Z Record version: sha256:8c3a1749ec34bf1fb467697c58eec470529ca851ce74b508f8ee816da8dd6975 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
970-10-05-1AmendedAccounting Standards Update No. 2016-0202/25/2016
970-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
970-10-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
970-10-15-8AmendedAccounting Standards Update No. 2016-0202/25/2016
970-10-15-9AmendedAccounting Standards Update No. 2014-0905/28/2014
970-10-15-10SupersededAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:e33cd93f956931ac0d7e3c2c97bf78c8058b9dff9cd1f9ee8a91ce4480a7cab4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 970-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/970/10/#05-overview-and-background) SEC content: no ##### [970-10-05-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:a471efaf5e91d38f65e70e854ed40a9e38e7ab2f57fcc5ab9d606afbf037f68b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 1. a Real Estate—General 2. b Real Estate—Common Interest Realty Associations 3. c Real Estate—Real Estate Investment Trusts 4. d Real Estate—Retail Land 5. e Real Estate—Time-Sharing Activities. 842-40 ##### [970-10-05-2](https://asc.understandingaccounting.org/asc/970/10/#970-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:d0a0e3e2b7c37c861c9de243a11c325a2aaa3a9418c1efb3bea65397732974b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate—General Topic provides general real estate industry guidance, and includes the following Subtopics: 1. a Overall 2. b Statement of Cash Flows 3. c [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 4. d Investments—Equity Method and Joint Ventures 5. e Other Assets and Deferred Costs 6. f Property, Plant, and Equipment 7. g Debt 8. h [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 9. i Other Expenses 10. j Consolidation 11. k Interest. ##### [970-10-05-3](https://asc.understandingaccounting.org/asc/970/10/#970-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:b7aacc86ae25369fae4a26581bef760398cb67627d83e70fdc97db74228d03ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance throughout this Topic is presented in the following Subsections: 1. a General 2. b Real Estate Syndication 3. c Real Estate Projects. ##### [970-10-05-4](https://asc.understandingaccounting.org/asc/970/10/#970-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:f1d708bdcb39bd9d832b7f1496082b015325d6c77a6803e235b5929290ad5fb7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide accounting guidance concerning various forms of real estate investment, including real estate ventures, general and limited partnerships, corporate joint ventures and tax increment financing entities. They also provide investor-lender guidance concerning interest on loans or advances to a [real estate venture](https://asc.understandingaccounting.org/glossary/r/#real-estate-venture "Any of the following: a joint venture, a general partnership, a limited partnership, and an undivided interest."). See Section 272-10-05 regarding limited liability companies. ### Real Estate Syndication ##### [970-10-05-5](https://asc.understandingaccounting.org/asc/970/10/#970-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:8873b8a44bfe233a5d913f514ac8fcc2640529d9840f05ea0c9fd3ca763d0473 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate Syndication Subsections provide accounting guidance concerning the recognition of income from real estate [syndication activities](https://asc.understandingaccounting.org/glossary/s/#syndication-activities "Efforts to directly or indirectly sponsor the formation of entities that acquire interests in real estate by raising funds from investors. As consideration for their investments, the investors receive ownership or other financial interests in the sponsored entities. All general partners in syndicated partnerships are deemed to perform syndication activities."). ### Real Estate Project Costs ##### [970-10-05-6](https://asc.understandingaccounting.org/asc/970/10/#970-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:55.847Z to 2026-09-10T02:25:55.847Z Record version: sha256:b3ed82bf161d0824bb405b1c62cbf3281f8a16ea20d7d642b676c240006e5be4 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 establish accounting and reporting standards for acquisition, development, construction, selling, and rental costs associated with real estate projects. They also provide guidance for the accounting for initial rental operations and criteria for determining when the status of a rental project changes from nonoperating to operating. 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. Source downloaded (UTC): 2026-09-10T02:26:08.366Z to 2026-09-10T02:26:08.366Z Record version: sha256:223bb117d0ad9aa131173e0fdc23f1b7b4a83c3b552df177a9f3392a07755789 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 970-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/970/10/#sec-50-disclosure) SEC content: yes #### Supplemental Schedules ##### [970-10-S50-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:08.366Z to 2026-09-10T02:26:08.366Z Record version: sha256:b157399c50eed19fc90d9af9a62926f98b24c83fda5ae0932cdd8a5a2ae374fb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [948-310-S99-1](https://asc.understandingaccounting.org/asc/310/948/#310-948-S99-1), Regulation S-X, Rule 12-29, for the required supplemental schedule disclosing mortgage loans on real estate. ##### [970-10-S50-2](https://asc.understandingaccounting.org/asc/970/10/#970-10-S50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:08.366Z to 2026-09-10T02:26:08.366Z Record version: sha256:d0c5e7bd5521f8cadbf79f1ae33eadd28c1a925110a2597898a6ba419042e26f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [970-10-S99-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-S99-1), SAB Topic 7.C, for SEC Staff views on the inclusion of certain supplemental schedules in annual reports. Source downloaded (UTC): 2026-09-10T02:26:12.373Z to 2026-09-10T02:26:12.373Z Record version: sha256:93380ec5051d4c0190a1fbd6a5f304ea6b19e8945a0382d33f232da5dd7350cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 970-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/970/10/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [970-10-S99-1](https://asc.understandingaccounting.org/asc/970/10/#970-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:12.373Z to 2026-09-10T02:26:12.373Z Record version: sha256:0469354bd295a7eafe25e8233d4732310293ef793813173e64cee692b2921f53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SAB Topic 7.C, Schedules of Real Estate and Accumulated Depreciation, and of Mortgage Loans on Real Estate. - Facts: Whenever investments in real estate or mortgage loans on real estate are significant, the schedules of such items (see Rules 12-28 and 12-29 of Regulation S-X) are required in a prospectus. - Question: Is such information also required in annual reports to shareholders? - Interpretive Response: Although Rules 14a-3 and 14c-3 permit the omission of financial statement schedules from annual reports to shareholders, the staff is of the view that the information required by these schedules is of such significance within the real estate industry that the information should be included in the financial statements in the annual report to shareholders.