# ASC 976-10-15: Real Estate—Retail Land — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/976/10/#15-scope-and-scope-exceptions) 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): 2026-09-10T02:26:57.207Z to 2026-09-10T02:26:57.207Z Record version: sha256:ca26f17e71f9621cd0a2426239b13ecca27c4cd10465a411a325145018cb40cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 976-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/976/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [976-10-15-1](https://asc.understandingaccounting.org/asc/976/10/#976-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:57.207Z to 2026-09-10T02:26:57.207Z Record version: sha256:b0fb56062f4cce25f4861be4f105903dca200a3d7aa3b7ffab3a3b78b7e74310 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Real Estate—Retail Land 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. ##### [976-10-15-2](https://asc.understandingaccounting.org/asc/976/10/#976-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:57.207Z to 2026-09-10T02:26:57.207Z Record version: sha256:bead86326237b59304b213455cf2b72de0b87cdc02c782b6ea44252bca2054df 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 [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Entities ##### [976-10-15-3](https://asc.understandingaccounting.org/asc/976/10/#976-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:57.207Z to 2026-09-10T02:26:57.207Z Record version: sha256:d0fad9098d9de24eaf97a36dec93690e1966e8c2d6376932ecf3d8ecdfa58d20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic provides guidance for all entities that sell, on a volume basis, lots that are subdivisions of large tracts of land. Such sales are characterized by down payments so small that local banks and savings and loan institutions would not loan money on the property at market rates or purchase the buyer's note for the remaining purchase price without a substantial discount. The seller is unable to enforce the sales contract or the buyer's note against the buyer's general credit. If the buyer cancels the contract within an established cancellation period, its money is refunded. Defaults by the buyer after the cancellation period result in recovery of the land by the seller and forfeiture of at least some principal payments made by the buyer. Federal and state laws may affect the amount that can be retained by the seller. #### Transactions ##### [976-10-15-4](https://asc.understandingaccounting.org/asc/976/10/#976-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:26:57.207Z to 2026-09-10T02:26:57.207Z Record version: sha256:acb6eccc7df31c2627d3caaa41cbbf84cfa89cfc24a7cb8f6c7ed9580c95df6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following transactions and activities: 1. a Sales of lots to builders 2. b Sales of homes, buildings, and parcels of land to builders and others 3. c Sales of corporate stock of entities with substantial real estate, sales of partnership interests, and sales of [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.") interests if the sales are in substance sales of real estate. An example of a sale of a partnership interest that is in substance a sale of real estate would be an entity forming a partnership, arranging for the partnership to acquire the property directly from third parties, and selling an interest in the partnership to investors who then become limited partners. 4. d Sales of options to purchase real estate.