ASC Topic 972
Real Estate—Common Interest Realty Associations
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ASC 972 is the real estate topic devoted to common interest realty associations (CIRAs) — owner associations such as homeowners' and condominium associations, time-share associations, planned-unit developments, and cooperative housing corporations. The Overall subtopic (972-10) sets scope and background, explaining that the Codification divides real estate guidance among several subindustry topics (Real Estate—General, CIRAs, REITs, Time-Sharing Activities, and Retail Land), with sale-leaseback sales of real estate addressed in Subtopic 842-40 (972-10-05-1). A CIRA is defined by individual ownership of a lot, interior space, or shares of stock; an undivided interest in common property subject to covenant, restriction, or contract; automatic membership in a state-law association; and funding through periodic assessments of all owners (972-10-05-3 through 05-4). The single most important idea is that Topic 972 supplies only incremental, industry-specific guidance — CIRAs must still comply with all other applicable GAAP (972-10-15-1).
Subtopics
- 10Overall8 ¶
ASC 972-10 is the Overall subtopic that sets the scope and background for accounting by common interest realty associations (CIRAs) — associations of owners such as homeowners associations, condominium associations, time-share associations, planned-unit developments, and cooperative housing corporations. It provides only incremental, industry-specific guidance; CIRAs must also follow all other applicable GAAP. Topic 972 is one of several real estate topics, each addressing a different real estate subindustry.