{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/330/978/#30-initial-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":"330","topic_title":"Inventory","subtopic":"330-978","subtopic_title":"Real Estate—Time-Sharing Activities","section":{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":"Accounting for Cost of Sales and Time-Sharing Inventory","paragraphs":[{"citation":"330-978-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_313B425F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 shall account for cost of sales and time-sharing inventory using the <a href=\"/glossary/r/#relative-sales-value-method\" class=\"term\" title=\"The relative sales value method is similar to a gross profit method and is used to allocate inventory cost and determine cost of sales in conjunction with a sale. Under the relative sales value method, cost of sales is calculated as a percentage of net sales using a cost-of-sales percentage—the ratio of total estimated cost (including costs to complete, if any) to total estimated time-sharing revenue. Time-sharing revenue is calculated as total expected future revenue adjusted for total expected future bad-debt expense.\"><span>relative sales value method</span></a>. The relative sales value method shall be applied to each <a href=\"/glossary/p/#phase\" class=\"term\" title=\"A contractually or physically distinguishable portion of a real estate project (including time-sharing projects). That portion is distinguishable from other portions based on shared characteristics such as: Units a developer has declared or legally registered to be for sale Units linked to an owners association Units to be constructed during a particular time period How a developer plans to build the real estate project.\"><span>phase</span></a> separately. <a href=\"/glossary/c/#common-costs\" class=\"term\" title=\"Costs that relate to two or more units or phases within a real estate or time-sharing project.\"><span>Common costs</span></a>, including <a href=\"/glossary/a/#amenities\" class=\"term\" title=\"Features that enhance the attractiveness or perceived value of a time-sharing interval. Examples of amenities include golf courses, utility plants, clubhouses, swimming pools, tennis courts, indoor recreational facilities, and parking facilities. See also Promised Amenities.\"><span>amenities</span></a>, shall be allocated to inventory among the phases that those costs will benefit. </span></span></div></div>","snippet":"Sellers of time-sharing intervals shall account for cost of sales and time-sharing inventory using the relative sales value method. The relative sales value method shall be applied to each phase separately. Common costs,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ffa67a7d3c4df84713266d4be5c80b18c48b07d5783b56e2754eb516656605d","downloaded_from":"2026-09-09T23:53:47.501Z","last_downloaded_at":"2026-09-09T23:53:47.501Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479096","source_sha256":"6d6598411670e839f5a77330d152b74c3a4ed1fb616fce5c48b4d4c6aebddabe"}},{"citation":"330-978-30-2","para":"30-2","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:d1883a9a7c87420e4721eab2d97960e35be628ab470bc464fabd00aac5234837","downloaded_from":"2026-09-09T23:53:47.501Z","last_downloaded_at":"2026-09-09T23:53:47.501Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479096","source_sha256":"6d6598411670e839f5a77330d152b74c3a4ed1fb616fce5c48b4d4c6aebddabe"}},{"citation":"330-978-30-3","para":"30-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/330/978/#330-978-35-1\" class=\"xref\">978-330-35-1</a> for additional guidance related to the determination of total time-sharing revenue and total cost estimates.</div></div>","snippet":"See paragraph 978-330-35-1 for additional guidance related to the determination of total time-sharing revenue and total cost estimates.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb3bfc4fac30fe02867a3a7fff83b2a87e0eca5c1327bafc978bb28460d5dcec","downloaded_from":"2026-09-09T23:53:47.501Z","last_downloaded_at":"2026-09-09T23:53:47.501Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479096","source_sha256":"6d6598411670e839f5a77330d152b74c3a4ed1fb616fce5c48b4d4c6aebddabe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3524df067ba0f2315e5c216f47292b73984e91b14cedfc445625fd7afad2e275","downloaded_from":"2026-09-09T23:53:47.501Z","last_downloaded_at":"2026-09-09T23:53:47.501Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479096","source_sha256":"6d6598411670e839f5a77330d152b74c3a4ed1fb616fce5c48b4d4c6aebddabe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6aa8bdcb470fafcd43fef5deb278fedbc7c189ae05d184df502103ff27549c6","downloaded_from":"2026-09-09T23:53:47.501Z","last_downloaded_at":"2026-09-09T23:53:47.501Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479096","source_sha256":"6d6598411670e839f5a77330d152b74c3a4ed1fb616fce5c48b4d4c6aebddabe"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f6aa8bdcb470fafcd43fef5deb278fedbc7c189ae05d184df502103ff27549c6","downloaded_from":"2026-09-09T23:53:47.501Z","last_downloaded_at":"2026-09-09T23:53:47.501Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479096","source_sha256":"6d6598411670e839f5a77330d152b74c3a4ed1fb616fce5c48b4d4c6aebddabe"}}