return of capital

This Subtopic governs equity transactions and reporting for investment companies, focusing on capital share transactions and distributions to shareholders. It requires per-class disclosure of net asset value per share and the components of the net change in net assets from capital share transactions, along with tax-basis components of dividends paid. Return of capital is determined only at the fund level, not per class.

ASC 974-10 is the Overall subtopic for Real Estate—Real Estate Investment Trusts, describing the structure and scope of the REIT Topic and pointing to its subtopics (equity method/joint ventures, other expenses, consolidation, interest, and leases). It provides only incremental industry-specific guidance: REITs must also follow all otherwise applicable GAAP. It applies to all REITs, whether or not they have elected the federal tax treatment that avoids corporate income tax by distributing at least 90 percent of taxable income to shareholders.