{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/330/978/","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.","number":"330-978","topic":"330","title":"Real Estate—Time-Sharing Activities","area":"Assets","paragraphs":16,"summary":"ASC 330-978 governs how time-share sellers measure time-sharing inventory (intervals) and cost of sales. Sellers must use the relative sales value method, applied phase by phase, with common costs (including amenities) allocated among benefited phases, and must recalculate total estimated time-sharing revenue and total costs at least quarterly. Changes in estimate are recorded as current-period adjustments, and rental/other activity during the holding period is treated as incidental operations that reduce the pool of inventory costs.","concepts":["relative sales value method","time-sharing interval","cost-of-sales percentage","incidental operations","holding period","change in estimate","expected uncollectibles","inventory impairment"],"categories":["Subsequent measurement","Inventory and PP&E","Industry-specific","Impairment"],"level":"advanced","topic_title":"Inventory","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"330-978-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"> <table class=\"asc-table\" id=\"SL50392517-161812\"> <tr> <td class=\"entry\"> <strong class=\"ph b\">Paragraph</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Action</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Accounting Standards Update</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Date</strong> </td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>Contract</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/c/#customer\" class=\"term\" title=\"A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.\"><span>Customer</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Deposit Method</strong> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/i/#incremental-costs-of-incidental-operations\" class=\"term\" title=\"Costs that would not be incurred except in relation to the conduct of incidental operations. Interest, taxes, insurance, security, and similar costs that would be incurred during the development of a real estate project regardless of whether incidental operations were conducted are not incremental costs.\"><span>Incremental Costs from Incidental Operations</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/i/#incremental-revenues-from-incidental-operations\" class=\"term\" title=\"Revenues that would not be produced except in relation to the conduct of incidental operations.\"><span>Incremental Revenue from Incidental Operations</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/m/#mini-vacation\" class=\"term\" title=\"A marketing program under which a time-share developer offers, for a fee, a short (typically, two to three days) visit to a destination where the developer operates a project. The developer typically subsidizes the fee to the customer for the mini-vacation in exchange for the customer attending a sales presentation at the project. The mini-vacation may include room accommodations, entertainment tickets, and similar items of value. The customer typically accepts the offer of the fee subsidy in exchange for his or her attending the sales presentation.\"><span>Mini-Vacation</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <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> (2nd def.)</td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/r/#revenue\" class=\"term\" title=\"Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.\"><span>Revenue</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <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> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/s/#sampler-program\" class=\"term\" title=\"A marketing program under which a time-share developer offers a customer, who has previously toured one of the developer's projects, a stay at one of the projects at a reduced rate. In exchange, the customer agrees to take another, subsequent tour of the project selected under the sampler program during the customer's stay at that project. If the subsequent tour results in a sale, the developer may allow the customer to apply some or all of the amount paid for the sampler toward the purchase of a time-share, as a part of the down payment. Also referred to as Exit Program.\"><span>Sampler Program</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <strong class=\"ph b\">Undivided Interest</strong> (2nd def.)</td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a> </td> <td class=\"entry\">03/14/2014</td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/330/978/#330-978-15-3\" class=\"xref\">978-330-15-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/330/978/#330-978-15-4\" class=\"xref\">978-330-15-4</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/330/978/#330-978-30-1\" class=\"xref\">978-330-30-1</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/330/978/#330-978-30-2\" class=\"xref\">978-330-30-2</a> </td> <td class=\"entry\">Superseded</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/330/978/#330-978-30-3\" class=\"xref\">978-330-30-3</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <div class=\"xref-range displayInline\"><a href=\"/asc/330/978/#330-978-35-1\" class=\"xref\">978-330-35-1 through 35-4</a></div> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2014-09/\" class=\"xref\">Accounting Standards Update No. 2014-09</a> </td> <td class=\"entry\">05/28/2014</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/330/978/#330-978-35-6\" class=\"xref\">978-330-35-6</a> </td> <td class=\"entry\">Amended</td> <td class=\"entry\"> <a href=\"/updates/asu-2016-02/\" class=\"xref\">Accounting Standards Update No. 2016-02</a> </td> <td class=\"entry\">02/25/2016</td> </tr> </table> </div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nContract | Added | Accounting Standards Update No. 2014-09 | 05/28/2014 |\nCustomer | Add…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2f28356cc790deb938b7dafedc6903398a1481e07758e878ff31a6b3259ff3ff","downloaded_from":"2026-09-09T23:53:35.942Z","last_downloaded_at":"2026-09-09T23:53:35.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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timestamps","source_key":"1943274/2147478388","source_sha256":"4e58ad1909b89694ec821d81fdc42e701f7d58c2b2637e8bf670546a2dc0eac8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e76ae7891bb86ffcaef83599a3c6d1dee932ba3f28b58bd753035ce38d3ab58f","downloaded_from":"2026-09-09T23:53:35.942Z","last_downloaded_at":"2026-09-09T23:53:35.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478388","source_sha256":"4e58ad1909b89694ec821d81fdc42e701f7d58c2b2637e8bf670546a2dc0eac8"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"330-978-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic addresses real estate <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> inventory measurement issues. Time-sharing inventory consists of <a href=\"/glossary/t/#time-sharing-interest\" class=\"term\" title=\"See Interval.\"><span>time-sharing interests</span></a> or <a href=\"/glossary/i/#interval\" class=\"term\" title=\"The specific period (generally, a specific week) during the year that a time-sharing unit is specified by agreement to be available for occupancy by a particular customer. Also denoted Time-Sharing Interest or Time-Share.\"><span>intervals</span></a>.</div></div>","snippet":"This Subtopic addresses real estate time-sharing inventory measurement issues. Time-sharing inventory consists of time-sharing interests or intervals.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64334e2a978488e66cf7f5b4f374880d1901efd2c3737c9b7cb39b3df429f0d0","downloaded_from":"2026-09-09T23:53:39.402Z","last_downloaded_at":"2026-09-09T23:53:39.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478281","source_sha256":"1c8c62c7a75bbb19debdcc6f1d81fba8ed520594222aa461c4ddee7b880394e4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5b1ef4fbacae5a1f9f294225042f0691b85f30c2e350ab63cceeabb6a0ab637","downloaded_from":"2026-09-09T23:53:39.402Z","last_downloaded_at":"2026-09-09T23:53:39.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478281","source_sha256":"1c8c62c7a75bbb19debdcc6f1d81fba8ed520594222aa461c4ddee7b880394e4"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:425ef4ddeed47bbd416154a493e396b8637ae8c0293357a3550c65e07a246bb5","downloaded_from":"2026-09-09T23:53:39.402Z","last_downloaded_at":"2026-09-09T23:53:39.402Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478281","source_sha256":"1c8c62c7a75bbb19debdcc6f1d81fba8ed520594222aa461c4ddee7b880394e4"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"330-978-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-F8205DD8-1CB8-4476-8985-071BE1E6F41F.ditamap\" class=\"ditamap\">978-10-15</a>, with specific transaction exceptions noted below.</div> </div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15, with specific transaction exceptions noted below.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:28f8b6f918de02fc224394ca2eb43e1490844268012e94462717e5a35f70e08d","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}},{"citation":"330-978-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/810/978/#810-978-25-3\" class=\"xref\">978-810-25-3</a> for guidance concerning when an entity shall recognize its interests in a <a href=\"/glossary/s/#time-sharing-special-purpose-entity\" class=\"term\" title=\"An entity, typically a corporation or a trust, to which a seller transfers time-sharing real estate in exchange for the entity's stock, membership interests, or beneficial interests.\"><span>special-purpose entity</span></a> as inventory.</div> </div>","snippet":"See paragraph 978-810-25-3 for guidance concerning when an entity shall recognize its interests in a special-purpose entity as inventory.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e42eaf65d157ea097ed20b5862d3bcdd7c4072b6a67375cdc4c8e11769afc53","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:26e43ded10ba310ffed6f95e1f4b294b494214e0d2329af314ffa69146b7ac8c","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}},{"block":null,"heading":"Transactions","paragraphs":[{"citation":"330-978-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in this Subtopic applies to the following transactions and activities:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_31213FF8-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">All <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> sale transactions </span></span><span class=\"sfragment\" id=\"sfr_31214130-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">that are within the scope of Topic <a altsource=\"GUID-90450890-CA59-4C9A-A88C-D53D3DE3192F.ditamap\" class=\"ditamap\">606</a> on <a href=\"/glossary/r/#revenue\" class=\"term\" title=\"Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.\"><span>revenue</span></a> from <a href=\"/glossary/c/#contract\" class=\"term\" title=\"An agreement between two or more parties that creates enforceable rights and obligations.\"><span>contracts</span></a> with <a href=\"/glossary/c/#customer\" class=\"term\" title=\"A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration.\"><span>customers</span></a>.</span></span></div></li></ol></div> </div>","snippet":"The guidance in this Subtopic applies to the following transactions and activities:\n(a) All time-sharing sale transactions that are within the scope of Topic 606 on revenue from contracts with customers.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50c4e5ff439e5e1ed166316db592a2f09d7749c1a8fc95780df4442ffee296a3","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}},{"citation":"330-978-15-4","para":"15-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">The guidance in this Subtopic does not apply to the following transactions and activities:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_31214226-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Time-sharing transactions transactions that fail to meet all of the criteria in paragraph <a href=\"/asc/606/10/#606-10-25-1\" class=\"xref\">606-10-25-1</a> and, therefore, are accounted for in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/606/10/#606-10-25-6\" class=\"xref\">606-10-25-6 through 25-8</a></div>.</span></span></div></li></ol></div> </div>","snippet":"The guidance in this Subtopic does not apply to the following transactions and activities:\n(a) Time-sharing transactions transactions that fail to meet all of the criteria in paragraph 606-10-25-1 and, therefore, are acc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:212a59dd1b0fb498e6a712f6c94e985465b15153ffd0401c8ce67c85c5dd9e4e","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bcd9bde8cae010004353ab61929d2cff38c252e3f33885f0e53bb70f69dcf0b1","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c7d2086c12ee7dae11de7a72f331991e0bd4c2486c55e1748c169fc165700663","downloaded_from":"2026-09-09T23:53:41.579Z","last_downloaded_at":"2026-09-09T23:53:41.579Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477404","source_sha256":"3f566a58486c334bcbb0902206d4db94442a8796c5c86cc38a563ed804066c5e"}},{"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"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Accounting for Cost of Sales and Time-Sharing Inventory","paragraphs":[{"citation":"330-978-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_31664153-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">At least quarterly, both total <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> revenue (actual to-date plus expected future revenue) and total cost estimates shall be recalculated. </span></span> <span class=\"sfragment\" id=\"sfr_31664316-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A time-sharing entity shall adjust at least quarterly even if it does not issue quarterly financial reports under Securities and Exchange Commission (SEC) reporting requirements. </span></span> <span class=\"sfragment\" id=\"sfr_316644A6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The estimate of total time-sharing revenue (actual to-date plus expected future revenue) </span></span> <span class=\"sfragment\" id=\"sfr_316645F1-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">for use in 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></span></span> <span class=\"sfragment\" id=\"sfr_3166474D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">shall incorporate factors such as incurred or estimated uncollectibles, changes in sales prices or sales mix, repossession of intervals that the seller may or may not be able to resell, effects of <a href=\"/glossary/u/#upgrade\" class=\"term\" title=\"A time-sharing transaction whereby a customer relinquishes the right to a currently held time-sharing interval and obtains a higher-priced time-sharing interval from the same seller.\"><span>upgrade</span></a> programs, and past or expected sales incentives to sell slow-moving inventory units. </span></span> <span class=\"sfragment\" id=\"sfr_3166488A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Such amounts should be included in the estimate of total time-sharing revenue for use in the relative sales value method even when those amounts are recognized as bad-debt expense within the statement of comprehensive income rather than included within the revenue recognized. </span></span> <span class=\"sfragment\" id=\"sfr_316649EE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The cost-of-sales percentage shall be similarly recalculated each time estimated revenue </span></span> <span class=\"sfragment\" id=\"sfr_31664B1D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">(including amounts reported or expected to be reported as revenue or as bad-debt expense) </span></span> <span class=\"sfragment\" id=\"sfr_31664C5D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> or cost is adjusted, using the new estimate of total time-sharing revenue and total cost (including costs to complete, if any). </span></span> <span class=\"sfragment\" id=\"sfr_31664DAA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The effects of changes in estimate for cost shall be accounted for in each period using a current-period adjustment, that is, the <a href=\"/glossary/t/#time-share\" class=\"term\" title=\"See Interval.\"><span>time-share</span></a> seller shall account for a change in estimate in the period of change so that the balance sheet at the end of the period of change and the accounting in subsequent periods are as they would have been if the revised estimates had been the original estimates. </span></span> <span class=\"sfragment\" id=\"sfr_31664FA7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The effects of changes in estimate shall be disclosed in accordance with paragraph <a href=\"/asc/250/10/#250-10-50-4\" class=\"xref\">250-10-50-4</a>. </span></span> <span class=\"sfragment\" id=\"sfr_316650EA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The inventory balance reported in the balance sheet, plus estimated costs to complete that inventory, if any, represents a pool of costs that will be charged against future revenue. </span></span> </div> </div>","snippet":"At least quarterly, both total time-sharing revenue (actual to-date plus expected future revenue) and total cost estimates shall be recalculated. A time-sharing entity shall adjust at least quarterly even if it does not …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93c00dd3a546348564b2b0155c0fbaac8f5401e3a7a913351354f568aac3e1e6","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}},{"citation":"330-978-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_3166523A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The recording of an adjustment for expected uncollectibles is accompanied by a corresponding adjustment to cost of sales and inventory that is effected through the application of the cost-of-sales percentage. However, under the relative sales value method, there is no accounting effect on inventory if a time-sharing <a href=\"/glossary/i/#interval\" class=\"term\" title=\"The specific period (generally, a specific week) during the year that a time-sharing unit is specified by agreement to be available for occupancy by a particular customer. Also denoted Time-Sharing Interest or Time-Share.\"><span>interval</span></a> is repossessed or otherwise reacquired unless the repossession causes a change in expected uncollectibles. The seller shall, however, perform impairment testing on its inventory in accordance with paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/360/10/#360-10-35-38\" class=\"xref\">360-10-35-38 through 35-40</a></div>, <a href=\"/asc/360/10/#360-10-35-43\" class=\"xref\">360-10-35-43</a>, and <a href=\"/asc/360/10/#360-10-40-5\" class=\"xref\">360-10-40-5</a>. </span></span> </div> </div>","snippet":"The recording of an adjustment for expected uncollectibles is accompanied by a corresponding adjustment to cost of sales and inventory that is effected through the application of the cost-of-sales percentage. However, un…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e72b0a175b95992a3c7a41b5b09f509ec6d53b98ef6200e6ce44b92aad28bbe","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}},{"citation":"330-978-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_316653B0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Revenue from and costs of rental and other operations during holding periods shall be accounted for as <a href=\"/glossary/i/#incidental-operations\" class=\"term\" title=\"Revenue-producing activities engaged in during the holding or development period to reduce the cost of developing the property for its intended use, as distinguished from activities designed to generate a profit or a return from the use of the property.\"><span>incidental operations</span></a>. <a href=\"/glossary/i/#incremental-revenues-from-incidental-operations\" class=\"term\" title=\"Revenues that would not be produced except in relation to the conduct of incidental operations.\"><span>Incremental revenue from incidental operations</span></a> in excess of <a href=\"/glossary/i/#incremental-costs-of-incidental-operations\" class=\"term\" title=\"Costs that would not be incurred except in relation to the conduct of incidental operations. Interest, taxes, insurance, security, and similar costs that would be incurred during the development of a real estate project regardless of whether incidental operations were conducted are not incremental costs.\"><span>incremental costs from incidental operations</span></a> shall be accounted for as a reduction of inventory costs—that is, the pool of inventory costs under the relative sales value method as described in paragraph <a href=\"/asc/330/978/#330-978-35-1\" class=\"xref\">978-330-35-1</a>. Estimates of future amounts of such excess should not be factored into the calculations of the relative sales value method. Incremental costs in excess of incremental revenue should be charged to expense as incurred. </span></span> </div> </div>","snippet":"Revenue from and costs of rental and other operations during holding periods shall be accounted for as incidental operations. Incremental revenue from incidental operations in excess of incremental costs from incidental …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:46b67542b04959f09fce6a1c21f57631830d0c958688fbdf2a93fd79fd9f2941","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c513166dc31f40bb0b77ce84848d2e4e570bf0949821ddfdd55d052eb2f45a13","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}},{"block":null,"heading":"Operations during Holding Periods","paragraphs":[{"citation":"330-978-35-4","para":"35-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_316654FD-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/h/#holding-period\" class=\"term\" title=\"The period during which a time-sharing interval is held for sale. Sellers may offer time-sharing units for rent during such holding periods.\"><span>Holding period</span></a> operations include <a href=\"/glossary/s/#sampler-program\" class=\"term\" title=\"A marketing program under which a time-share developer offers a customer, who has previously toured one of the developer's projects, a stay at one of the projects at a reduced rate. In exchange, the customer agrees to take another, subsequent tour of the project selected under the sampler program during the customer's stay at that project. If the subsequent tour results in a sale, the developer may allow the customer to apply some or all of the amount paid for the sampler toward the purchase of a time-share, as a part of the down payment. Also referred to as Exit Program.\"><span>sampler programs</span></a> and <a href=\"/glossary/m/#mini-vacation\" class=\"term\" title=\"A marketing program under which a time-share developer offers, for a fee, a short (typically, two to three days) visit to a destination where the developer operates a project. The developer typically subsidizes the fee to the customer for the mini-vacation in exchange for the customer attending a sales presentation at the project. The mini-vacation may include room accommodations, entertainment tickets, and similar items of value. The customer typically accepts the offer of the fee subsidy in exchange for his or her attending the sales presentation.\"><span>mini-vacations</span></a>. During holding periods, time-sharing intervals shall be accounted for as inventory and shall not be depreciated. Costs of operations during holding periods include seller subsidies and maintenance and related costs on time-sharing intervals held for sale. </span></span> </div> </div>","snippet":"Holding period operations include sampler programs and mini-vacations. During holding periods, time-sharing intervals shall be accounted for as inventory and shall not be depreciated. Costs of operations during holding p…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70d2ae59762715d784f5916b92a9fed1ea9826a5b90890a89c9a49f60ee6e756","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}},{"citation":"330-978-35-5","para":"35-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_31665632-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For time-sharing operations, the holding period (as that term is used in the definition of <a href=\"/glossary/i/#incidental-operations\" class=\"term\" title=\"Revenue-producing activities engaged in during the holding or development period to reduce the cost of developing the property for its intended use, as distinguished from activities designed to generate a profit or a return from the use of the property.\"><span>incidental operations</span></a>) begins at the time that intervals are held for and are available for sale—for example, when units in domestic locations are legally registered for sale as time-shares. </span></span> <span class=\"sfragment\" id=\"sfr_3166575E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A seller shall evaluate each period as to whether units previously considered held for and available for sale shall continue to be characterized as such. </span></span> </div> </div>","snippet":"For time-sharing operations, the holding period (as that term is used in the definition of incidental operations) begins at the time that intervals are held for and are available for sale—for example, when units in domes…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0ae0826a861ca4d89fce19b7075c42da56a0f1eb9e8894eb3dec0a4de528fab8","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}},{"citation":"330-978-35-6","para":"35-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_316659AC-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If rental activities occur other than during the holding period, the corresponding units shall be depreciated and those activities shall be accounted for as rental operations in accordance with Subtopic <a altsource=\"GUID-0A5CFFF3-BE6A-4645-A721-6610CEEA9A00.ditamap\" class=\"ditamap\">842-30</a> on leases—lessors. </span></span> </div> </div>","snippet":"If rental activities occur other than during the holding period, the corresponding units shall be depreciated and those activities shall be accounted for as rental operations in accordance with Subtopic 842-30 on leases—…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:15d29a8dff1e3b6ca4314c8d48e7dd47eb26e1f08de1c27765c44bee48277fe5","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33df91ac299199c85d2b81a644424f05104053850ee1e1629ab330935a2e51ce","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e999298da762f0115e529ec461e6c30f4bea00d7813302f505a505959656dac5","downloaded_from":"2026-09-09T23:53:49.878Z","last_downloaded_at":"2026-09-09T23:53:49.878Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478792","source_sha256":"28b6832e1927b0c20c8b8d636f3956de9dac7507b396410a5a04f61b8a21c05e"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"330-978-50-1","para":"50-1","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 disclosure requirements for changes in estimates used to perform 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>.</div></div>","snippet":"See paragraph 978-330-35-1 for disclosure requirements for changes in estimates used to perform the relative sales value method.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:be6b9f4a08043b89350e26f0732d1e576354acfebd7063faaffd34d5c23f8e89","downloaded_from":"2026-09-09T23:53:53.503Z","last_downloaded_at":"2026-09-09T23:53:53.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478260","source_sha256":"96a675f9640ee76cbe59043a2cd73ee08adc5db805c998e3046332df5f810545"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:98e70f7992aea9ecf742ad70a4d371be235d0d18ea44d35fb912ce33b9850716","downloaded_from":"2026-09-09T23:53:53.503Z","last_downloaded_at":"2026-09-09T23:53:53.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478260","source_sha256":"96a675f9640ee76cbe59043a2cd73ee08adc5db805c998e3046332df5f810545"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a98747a13fc2947f8564a3b57793183bc40ae782615c9b8fa4b886b9278e4a6f","downloaded_from":"2026-09-09T23:53:53.503Z","last_downloaded_at":"2026-09-09T23:53:53.503Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478260","source_sha256":"96a675f9640ee76cbe59043a2cd73ee08adc5db805c998e3046332df5f810545"}}],"enrichment":{"summary":"ASC 330-978 governs how time-share sellers measure time-sharing inventory (intervals) and cost of sales. Sellers must use the relative sales value method, applied phase by phase, with common costs (including amenities) allocated among benefited phases, and must recalculate total estimated time-sharing revenue and total costs at least quarterly. Changes in estimate are recorded as current-period adjustments, and rental/other activity during the holding period is treated as incidental operations that reduce the pool of inventory costs.","key_points":["Sellers of time-sharing intervals account for cost of sales and inventory using the relative sales value method, applied separately to each phase, with common costs such as amenities allocated among the phases they benefit (330-978-30-1).","At least quarterly—even if no quarterly SEC reports are filed—total time-sharing revenue (actual to-date plus expected future) and total cost estimates must be recalculated, incorporating uncollectibles, price/mix changes, repossessions, upgrade programs, and sales incentives; the cost-of-sales percentage is recomputed each time (330-978-35-1).","Effects of changes in estimate are accounted for as a current-period adjustment so that the ending balance sheet and subsequent accounting are as if the revised estimates had been the original ones, with disclosure under 250-10-50-4 (330-978-35-1).","An adjustment for expected uncollectibles carries a corresponding adjustment to cost of sales and inventory via the cost-of-sales percentage; repossession or reacquisition of an interval has no inventory effect unless it changes expected uncollectibles (330-978-35-2).","Inventory must still be tested for impairment under 360-10-35-38 through 35-40, 360-10-35-43, and 360-10-40-5 (330-978-35-2).","Rental and other operations during holding periods are incidental operations: incremental revenue exceeding incremental cost reduces the pool of inventory costs (and is not projected into the relative sales value calculation), while incremental cost exceeding revenue is expensed as incurred (330-978-35-3).","During holding periods—beginning when intervals are held for and available for sale (e.g., legally registered as time-shares)—intervals are inventory and are not depreciated; rental activity outside the holding period requires depreciation and lessor accounting under Subtopic 842-30 (330-978-35-4 through 35-6)."],"categories":["Subsequent measurement","Inventory and PP&E","Industry-specific","Impairment"],"audience_level":"advanced","student_note":"This is a niche, industry-specific measurement model: the relative sales value method links inventory relief directly to revenue estimates, so a change in expected uncollectibles automatically changes cost of sales and inventory. A common misunderstanding is thinking a repossessed interval goes back into inventory—it does not, unless the repossession changes the estimate of uncollectibles.","related_topics":["978-330","978-810","606-10","360-10","250-10","842-30"],"key_concepts":["relative sales value method","time-sharing interval","cost-of-sales percentage","incidental operations","holding period","change in estimate","expected uncollectibles","inventory impairment"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ab930292b765474d270379b72725e22aff7757b2297e38a54baccfb730c3351","downloaded_from":"2026-09-09T23:53:35.942Z","last_downloaded_at":"2026-09-09T23:53:56.981Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"340-978","title":"Real Estate—Time-Sharing Activities","topic_title":"Other Assets and Deferred Costs","score":0.8322,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09b444d9dd42a64e45a4fc4e74679640b48584578795aab81519f4e9d26cbec5","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"978-10","title":"Overall","topic_title":"Real Estate—Time-Sharing Activities","score":0.8115,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6229005058a5ba5a4671530ecf3174ec1180e244705f64108337376c50f7143b","downloaded_from":"2026-09-10T02:27:02.409Z","last_downloaded_at":"2026-09-10T02:27:14.744Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"310-978","title":"Real Estate—Time-Sharing 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