# ASC Topic 972: Real Estate—Common Interest Realty Associations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/972/) 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): 2026-09-10T02:26:14.164Z to 2026-09-10T02:26:21.543Z Record version: sha256:e7df12b7c96e2280c758e89c47545592a78d22479e9f5d1885352153d530ddfd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary 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). Source downloaded (UTC): 2026-09-10T02:26:14.164Z to 2026-09-10T02:26:21.543Z Record version: sha256:1f6c54e57ac52c3035860868cee736d29d4c0493c1e6818a515923145322b0cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 972-10: Real Estate—Common Interest Realty Associations — Overall ### Machine-generated study aids ```json { "summary": "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.", "key_points": [ "The Codification splits real estate guidance among Real Estate—General, Common Interest Realty Associations, Real Estate Investment Trusts, Time-Sharing Activities, and Retail Land; sale of real estate in a sale and leaseback is addressed in Subtopic 842-40 (972-10-05-1).", "Topic 972 addresses unique accounting and reporting issues of CIRAs through Subtopics on Overall, Presentation of Financial Statements, Notes to Financial Statements, Property, Plant, and Equipment, Other Expenses, Income Taxes, and Related Party Disclosures; two former subparagraphs were superseded by ASU 2014-09 (972-10-05-2).", "A common interest realty association is an association of owners responsible for providing services and maintaining property that all owners share or own in common, such as homeowners' and condominium associations (972-10-05-3).", "The defining characteristics are individual ownership of a lot, defined interior space, or shares of stock; an undivided interest in common property subject to covenant, restriction, or contract; automatic membership in an association formed under state law; and funding through periodic assessments of all owners (972-10-05-4).", "Topic 972 provides only incremental industry-specific guidance, so entities within its scope must also comply with applicable guidance not included in the Topic (972-10-15-1).", "The Topic applies to all entities that are CIRAs — including time-share associations, planned-unit developments, and cooperative housing corporations — and to all transactions they conduct (972-10-15-2 through 15-3)." ], "categories": [ "Industry-specific", "Presentation", "Disclosure" ], "audience_level": "introductory", "student_note": "This Overall subtopic is pure scope and background — it tells you who is a CIRA and reminds you that Topic 972 layers on top of, rather than replaces, general GAAP. A common misunderstanding is treating Topic 972 as a complete accounting model; its revenue-related subparagraphs were superseded by ASU 2014-09, so assessments revenue is analyzed under Topic 606.", "related_topics": [ "972-205", "972-235", "972-360", "972-740", "606", "842-40" ], "key_concepts": [ "common interest realty association", "homeowners association", "condominium association", "cooperative housing corporation", "undivided interest in common property", "periodic assessments", "incremental industry-specific guidance", "scope" ] } ``` Source downloaded (UTC): 2026-09-10T02:26:14.164Z to 2026-09-10T02:26:14.164Z Record version: sha256:3ecaaf5e8130a2c4b49103319c6e4961231b8ee8bafebd0a30f04cd7d3fed56f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 972-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/972/10/#00-status) SEC content: no ##### [972-10-00-1](https://asc.understandingaccounting.org/asc/972/10/#972-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:14.164Z to 2026-09-10T02:26:14.164Z Record version: sha256:a3765f78235cf47d249293b3bc4fad470bd5fd9483aa9caa65607209e84411d8 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
Time-SharingAmendedAccounting Standards Update No. 2014-0603/14/2014
Undivided Interest (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
972-10-05-1AmendedAccounting Standards Update No. 2016-0202/25/2016
972-10-05-1AmendedAccounting Standards Update No. 2014-0905/28/2014
972-10-05-2AmendedAccounting Standards Update No. 2014-0905/28/2014
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. Source downloaded (UTC): 2026-09-10T02:26:19.483Z to 2026-09-10T02:26:19.483Z Record version: sha256:a6c0ed737545ee29e9f100b56f1eae43e8365c09445535d7c3485608b4489561 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 972-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/972/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [972-10-15-1](https://asc.understandingaccounting.org/asc/972/10/#972-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:19.483Z to 2026-09-10T02:26:19.483Z Record version: sha256:c053e635762b8044b4dd3194cab7e9b58589eebaf52590a75e856e6c72a27f96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Real Estate—Common Interest Realty Associations 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. #### Entities ##### [972-10-15-2](https://asc.understandingaccounting.org/asc/972/10/#972-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:19.483Z to 2026-09-10T02:26:19.483Z Record version: sha256:e1bc124c5f663d7ab15e3285d39dcf06bbe11b815d58af4a25ee18302727674a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Real Estate—Common Interest Realty Associations Topic provides guidance for all entities that are [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."). 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, which is responsible for providing certain services and maintaining certain property that all owners share or own in common. Some examples of common interest realty associations are: 1. a [Homeowners associations](https://asc.understandingaccounting.org/glossary/h/#homeowners-association "See Association.") 2. b [Condominium](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.") associations 3. c Time-share associations 4. d [Planned-unit developments](https://asc.understandingaccounting.org/glossary/p/#planned-unit-development "A real estate development that consists of separate lots with contiguous or noncontiguous common areas and facilities owned and maintained by a common interest realty association in which owners have stock or a membership interest.") 5. e [Cooperative housing corporations](https://asc.understandingaccounting.org/glossary/c/#cooperative-housing-corporation "Also referred to as a coop, a cooperative housing corporation is an entity established as a corporation that owns the real estate, usually a multi-unit dwelling, and all improvements on it and is responsible for its maintenance and payment of debt service. Ownership in the corporation is evidenced by shares of stock owned by tenant-shareholders who are entitled to occupy a unit under a proprietary lease. The individual ownership interests in most cooperatives are structured as personal property interests, but some are structured as real property interests."). #### Transactions ##### [972-10-15-3](https://asc.understandingaccounting.org/asc/972/10/#972-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:19.483Z to 2026-09-10T02:26:19.483Z Record version: sha256:59ade04520d01616fe893a2c5c8ab9d43eb75dd55ff819ad98466a6cdd39a813 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Real Estate—Common Interest Realty Associations Topic applies to all transactions conducted by common interest realty associations.