{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/972/10/#05-overview-and-background","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":"972","topic_title":"Real Estate—Common Interest Realty Associations","subtopic":"972-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"972-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Real Estate—General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Real Estate—Common Interest Realty Associations</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Real Estate—Real Estate Investment Trusts</div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Real Estate—<a href=\"/glossary/t/#time-sharing\" class=\"term\" title=\"An arrangement in which a seller sells or conveys the right to occupy a dwelling unit for specified periods in the future. Forms of time-sharing arrangements include but are not limited to fixed and floating time, interval ownership, undivided interests, points programs, vacation clubs, right-to-use arrangements such as tenancy-for-years arrangements, and arrangements involving special-purpose entities. In this context, an undivided interest is a time-sharing arrangement that involves a tenant-in-common interest in a condominium unit or entire improved property, and in which the interest holder is assigned a specific period (generally, a specific week). The interest holder is also assigned a specific unit if the undivided interest is in the entire improved property.\"><span>Time-Sharing</span></a> Activities</div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\">Real Estate—Retail Land.</div></li></ol><div class=\"p\">See also Subtopic <a altsource=\"GUID-DEB4A805-0F16-411F-92EA-6269206682D5.ditamap\" class=\"ditamap\">842-40</a> for accounting guidance for the sale of real estate that is part of a sale and leaseback transaction.</div></div> </div>","snippet":"The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include:\n(a) Real Estate—General\n(b) Real Estate—Common Interest Realty…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5b488ceac2184c412806d72b7685626eb11fa7b90e314d8cbc7235feae15098e","downloaded_from":"2026-09-10T02:26:17.763Z","last_downloaded_at":"2026-09-10T02:26:17.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482903","source_sha256":"5d42f3a28b92c82624726a94f0b07861f79728989882720bc139aeb24cdf8682"}},{"citation":"972-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Real Estate—Common Interest Realty Associations Topic addresses the unique accounting and reporting issues for <a href=\"/glossary/c/#common-interest-realty-association\" class=\"term\" title=\"An association, also known as a community association, responsible for the governance of the common interest community, for which it was established to serve. A common interest realty association is generally funded by its members via periodic assessments by the common interest realty association so that it can perform its duties, which include management services and maintenance, repair, and replacement of the common property, among other duties established in the governing documents and by state statute.\"><span>common interest realty associations</span></a>. This Topic includes the following Subtopics:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Overall</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Presentation of Financial Statements</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Notes to Financial Statements</div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Property, Plant, and Equipment</div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-09</a>.</div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-09</a>.</div></li><li class=\"li-norm\"><span class=\"linum\">g</span><div class=\"p\">Other Expenses</div></li><li class=\"li-norm\"><span class=\"linum\">h</span><div class=\"p\">Income Taxes</div></li><li class=\"li-norm\"><span class=\"linum\">i</span><div class=\"p\">Related Party Disclosures.</div></li></ol></div> </div>","snippet":"The Real Estate—Common Interest Realty Associations Topic addresses the unique accounting and reporting issues for common interest realty associations. This Topic includes the following Subtopics:\n(a) Overall\n(b) Present…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bfbfe656c58e57c8ae705de54b0caa9d06b8186601086f526576f83fa7cf8de","downloaded_from":"2026-09-10T02:26:17.763Z","last_downloaded_at":"2026-09-10T02:26:17.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482903","source_sha256":"5d42f3a28b92c82624726a94f0b07861f79728989882720bc139aeb24cdf8682"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:24319198461b17e2e25667422a356d8c8c285daa458d441bb18a63b3b62831c1","downloaded_from":"2026-09-10T02:26:17.763Z","last_downloaded_at":"2026-09-10T02:26:17.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482903","source_sha256":"5d42f3a28b92c82624726a94f0b07861f79728989882720bc139aeb24cdf8682"}},{"block":null,"heading":"Other Considerations","paragraphs":[{"citation":"972-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_29886274-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Although housing cooperatives have been around since the 1920s, and planned unit developments since the 1840s, it was not until new forms of real estate ownership, such as <a href=\"/glossary/c/#condominium\" class=\"term\" title=\"A form of ownership of real property that combines exclusive ownership of a defined space and an undivided interest in the common elements. (Also referred to as a condo.) A common interest realty association is not a condominium unless the undivided interests in the common elements are vested in the unit owners.\"><span>condominiums</span></a> and time-share associations, emerged in the 1960s that the terms used to describe them became common. A key feature of these forms of real estate ownership is the existence of an <a href=\"/glossary/a/#association\" class=\"term\" title=\"An organization of unit owners responsible for the operation, administration, and management of the common property. Generally, a not-for-profit corporation with membership of all owners.\"><span>association</span></a> of owners, referred to in this Topic as a common interest realty association, which is responsible for providing certain services and maintaining certain property that all the owners share or own in common. Homeowners' associations and condominium associations are two examples of common interest realty associations. </span></span> </div> </div>","snippet":"Although housing cooperatives have been around since the 1920s, and planned unit developments since the 1840s, it was not until new forms of real estate ownership, such as condominiums and time-share associations, emerge…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:597fcfd6adfcde1224e274271d4aec81fdc03a7aee177d965dee898f60a25e8e","downloaded_from":"2026-09-10T02:26:17.763Z","last_downloaded_at":"2026-09-10T02:26:17.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482903","source_sha256":"5d42f3a28b92c82624726a94f0b07861f79728989882720bc139aeb24cdf8682"}},{"citation":"972-10-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_298863CA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The main characteristics of such ownership are the following: </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_298864AE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Individual ownership of a lot, defined interior space, or shares of stock </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_2988658C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Ownership of an undivided interest in the <a href=\"/glossary/c/#common-property\" class=\"term\" title=\"A common interest realty association's real or personal property to which title or other evidence of ownership is held by either: Individual members in common The common interest realty association directly.\"><span>common property</span></a>, with all owners bound by covenant, restriction, or contract through an association of owners </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">c</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_29886665-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Automatic membership in a common interest realty association that has been established under state laws and that performs maintenance and other service activities for the owners </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">d</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_2988674F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Funding of the common interest realty association's activities by periodic assessments of all owners. </span></span> </div> </li> </ol> </div> </div>","snippet":"The main characteristics of such ownership are the following:\n(a) Individual ownership of a lot, defined interior space, or shares of stock\n(b) Ownership of an undivided interest in the common property, with all owners b…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ee84db944d1dfef5bd39bdb8638853b51ab4a5f9dfe2e3a014dd3f37910da0d2","downloaded_from":"2026-09-10T02:26:17.763Z","last_downloaded_at":"2026-09-10T02:26:17.763Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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