{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/978/#35-subsequent-measurement","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":"310","topic_title":"Receivables","subtopic":"310-978","subtopic_title":"Real Estate—Time-Sharing Activities","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Collectibility of Receivable","paragraphs":[{"citation":"310-978-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_30964431-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The collection of notes receivable is an important function for sellers of <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> intervals. <a href=\"/glossary/t/#time-share\" class=\"term\" title=\"See Interval.\"><span>Time-share</span></a> sellers experience some level of <a href=\"/glossary/u/#uncollectibility\" class=\"term\" title='A situation in which, as a result of credit issues, the time-share seller is unable to collect all amounts due (both principal and interest) according to the contractual terms of a note receivable from a buyer, or a time-share receivable has not been written off but facts and circumstances indicate that it is probable that the seller will not collect all contractual payments. Any sale that, as a result of credit issues, is cancelled or modified subsequent to being recorded as a sale is considered uncollectible. For purposes of this definition, probable is defined in paragraph 450-20-25-1 as \"likely to occur\".'><span>uncollectibility</span></a> in a notes receivable portfolio in the ordinary course of business. To maximize collections, sellers use several kinds of collection programs, including modifications, deferments, assumptions, and downgrades. Sellers incur various costs in using those collection programs. The following provides guidance on accounting for various forms of uncollectibility and the associated costs. </span></span></div></div>","snippet":"The collection of notes receivable is an important function for sellers of time-sharing intervals. Time-share sellers experience some level of uncollectibility in a notes receivable portfolio in the ordinary course of bu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ba98418439c66a4855d41eb3686c4c7949cbd08513ee3b766eaad84cf03422ef","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},{"citation":"310-978-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_30964582-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Uncollectibility incorporates losses of both principal and interest. Accrued interest income receivable that is determined to be uncollectible shall be charged against interest income at the time the receivable is determined to be uncollectible. </span></span></div></div>","snippet":"Uncollectibility incorporates losses of both principal and interest. Accrued interest income receivable that is determined to be uncollectible shall be charged against interest income at the time the receivable is determ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7c8324838a2e7a8949ec12a68a9e7513768700d558ee60718260d05b882e1560","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},{"citation":"310-978-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_30964678-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Uncollectibility occurs whenever a receivable either becomes wholly uncollectible or is modified in some manner that results in less than 100-percent collection of the original note. The measurement of uncollectibility shall be based on actual receivables collection experience (and other considerations)—whether the seller or a third party is the servicer of the receivables—rather than the amounts a seller receives as proceeds for receivables sales, securitizations, or hypothecations. </span></span></div></div>","snippet":"Uncollectibility occurs whenever a receivable either becomes wholly uncollectible or is modified in some manner that results in less than 100-percent collection of the original note. The measurement of uncollectibility s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:faf5a415d5339a63dedf031028dea3880c09a221f6ad9e368fd009da84f2b732","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},{"citation":"310-978-35-4","para":"35-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"GUID-4FB90E6F-A3DA-4E1B-A3B0-373A05C8BF20\"><span class=\"sfragment-source\">A creditor (time-share seller) shall account for a note receivable modification or <a href=\"/glossary/d/#deferment\" class=\"term\" title=\"The postponement of some or all of a debtor's payment obligations.\"><span>deferment</span></a> in accordance with Topic <a altsource=\"GUID-848F1C96-68A0-4270-A4CD-D7487E1B0F3B.ditamap\" class=\"ditamap\">310</a>.</span></span><span class=\"sfragment\" id=\"GUID-BF31A904-228D-4D07-A4B3-C9208AC8DA51\"><span class=\"sfragment-source\">A creditor shall account for a <a href=\"/glossary/d/#downgrade\" class=\"term\" title=\"A transaction under which, as a result of credit concerns, the holder of a time-sharing interval returns the interval to the seller in exchange for a lower-valued interval (and a corresponding reduction in contractual payment obligation). The determination of whether the value is lower is based on a comparison of the sales value of the new interval with the original sales value of the original interval.\"><span>downgrade</span></a> that results in an expected credit loss in accordance with Topic <a altsource=\"GUID-625589DC-9B5F-442F-8EE2-DE0905FB7CE6.ditamap\" class=\"ditamap\">326</a> on credit losses.</span></span><span class=\"sfragment\" id=\"GUID-ADA71F2A-A788-4970-8A0E-2C321D8AFF66\"><span class=\"sfragment-source\">Any reductions in the recorded investment in a note receivable resulting from the application of that Topic shall be charged against the allowance for uncollectibles. Incremental, direct costs associated with uncollectibility, such as costs of collection programs, shall be charged to expense as incurred. </span></span></div></div></div>","snippet":"A creditor (time-share seller) shall account for a note receivable modification or deferment in accordance with Topic 310.A creditor shall account for a downgrade that results in an expected credit loss in accordance wit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0c3fb265c9956f0f5730106ded352b78cf549d3b2919a41320edf22935054c4","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},{"citation":"310-978-35-5","para":"35-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_30964B29-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">When a time-sharing sale transaction has been recorded, accounting for the allowance for credit losses follows similar valuation principles as any receivable. Each reporting period and at least quarterly a seller evaluates its receivables, estimates the amount it expects to ultimately collect, and evaluates the appropriateness of its allowance pursuant to Subtopic <a altsource=\"GUID-B92DF57A-D31A-4A52-999E-127107B41EED.ditamap\" class=\"ditamap\">326-20</a> on financial instruments measured at amortized cost. The allowance is then adjusted in accordance with Subtopic <a altsource=\"GUID-B92DF57A-D31A-4A52-999E-127107B41EED.ditamap\" class=\"ditamap\">326-20</a>. A corresponding adjustment is also made to cost of sales and inventory. </span></span></div></div>","snippet":"When a time-sharing sale transaction has been recorded, accounting for the allowance for credit losses follows similar valuation principles as any receivable. Each reporting period and at least quarterly a seller evaluat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:31b7f52c6c5e806a409260a1cd96be839ff55ee2765012e956335dc9764f474f","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},{"citation":"310-978-35-6","para":"35-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_30964CDA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The allowance for credit losses shall be determined based on consideration of expected credit losses by year of sale, as well as the aging of notes receivable and factors such as the location of the time-sharing units, contract terms, collection experience, economic conditions, reasonable and supportable forecasts, and other qualitative factors as appropriate in the circumstances.</span></span></div></div>","snippet":"The allowance for credit losses shall be determined based on consideration of expected credit losses by year of sale, as well as the aging of notes receivable and factors such as the location of the time-sharing units, c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b66863bef97e814ea726ed79a321a720c01d8dc6e47b26c8784f45602a6263ec","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},{"citation":"310-978-35-7","para":"35-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2014-09</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3afa547f86247cb34973ddfb14362c7b7c4e7c42f8f0675c5408e83ba4017572","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b90bfe40d1052d75ed4122dffc5eed3c4a63eb334ca0fdb73aacf7439ef2b230","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ed2edf4154896db621224172bf55e2bc736738892a0d38b5b69b4b7e28ad994","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ed2edf4154896db621224172bf55e2bc736738892a0d38b5b69b4b7e28ad994","downloaded_from":"2026-09-09T23:34:24.752Z","last_downloaded_at":"2026-09-09T23:34:24.752Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477857","source_sha256":"afdcbd05a880d06a6729e510d91cf186f8f2900211a4e68f71ebc93dc2469fdf"}}