# ASC 972-10-05: Real Estate—Common Interest Realty Associations — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/972/10/#05-overview-and-background) 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): 2026-09-10T02:26:17.763Z to 2026-09-10T02:26:17.763Z Record version: sha256:18cab9a1896df27319c164ec5907283bcb6428e2ff6f9d0420ee99f9794b4b39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 972-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/972/10/#05-overview-and-background) SEC content: no ##### [972-10-05-1](https://asc.understandingaccounting.org/asc/972/10/#972-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:17.763Z to 2026-09-10T02:26:17.763Z Record version: sha256:5b488ceac2184c412806d72b7685626eb11fa7b90e314d8cbc7235feae15098e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for real estate due to the differing accounting treatment for various real estate subindustries. The Topics include: 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—[Time-Sharing](https://asc.understandingaccounting.org/glossary/t/#time-sharing "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.") Activities 5. e Real Estate—Retail Land. See also Subtopic 842-40 for accounting guidance for the sale of real estate that is part of a sale and leaseback transaction. ##### [972-10-05-2](https://asc.understandingaccounting.org/asc/972/10/#972-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:17.763Z to 2026-09-10T02:26:17.763Z Record version: sha256:2bfbfe656c58e57c8ae705de54b0caa9d06b8186601086f526576f83fa7cf8de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate—Common Interest Realty Associations Topic addresses the unique accounting and reporting issues for [common interest realty associations](https://asc.understandingaccounting.org/glossary/c/#common-interest-realty-association "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."). This Topic includes the following Subtopics: 1. a Overall 2. b Presentation of Financial Statements 3. c Notes to Financial Statements 4. d Property, Plant, and Equipment 5. e [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 6. f [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 7. g Other Expenses 8. h Income Taxes 9. i Related Party Disclosures. #### Other Considerations ##### [972-10-05-3](https://asc.understandingaccounting.org/asc/972/10/#972-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:17.763Z to 2026-09-10T02:26:17.763Z Record version: sha256:597fcfd6adfcde1224e274271d4aec81fdc03a7aee177d965dee898f60a25e8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/glossary/c/#condominium "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.") 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 [association](https://asc.understandingaccounting.org/glossary/a/#association "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.") 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. ##### [972-10-05-4](https://asc.understandingaccounting.org/asc/972/10/#972-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:17.763Z to 2026-09-10T02:26:17.763Z Record version: sha256:ee84db944d1dfef5bd39bdb8638853b51ab4a5f9dfe2e3a014dd3f37910da0d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The main characteristics of such ownership are the following: 1. a Individual ownership of a lot, defined interior space, or shares of stock 2. b Ownership of an undivided interest in the [common property](https://asc.understandingaccounting.org/glossary/c/#common-property "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."), with all owners bound by covenant, restriction, or contract through an association of owners 3. c 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 4. d Funding of the common interest realty association's activities by periodic assessments of all owners.