{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/978/#25-recognition","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":"340","topic_title":"Other Assets and Deferred Costs","subtopic":"340-978","subtopic_title":"Real Estate—Time-Sharing Activities","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Costs to Sell Time-Sharing Intervals","paragraphs":[{"citation":"340-978-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">All costs incurred to sell <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><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> should be charged to expense as incurred unless they specifically qualify for capitalization in accordance with the guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/340/40/#340-40-25-1\" class=\"xref\">340-40-25-1 through 25-4</a></div>.<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-09</a>.</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Subparagraph superseded by Accounting Standards Update No. 2014-09</a>.</div></li></ol></div> </div>","snippet":"All costs incurred to sell time-sharingintervals should be charged to expense as incurred unless they specifically qualify for capitalization in accordance with the guidance in paragraphs 340-40-25-1 through 25-4.\n(a) Su…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:644106eeda32241e073185e86c7e219f0bf82eace2246a68eccf32afef56f6e8","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"citation":"340-978-25-2","para":"25-2","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:ec36a391098874c1f99bbfa23f61511bc052583aeb4ea8ed9cba0dd4b9c701dd","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"citation":"340-978-25-3","para":"25-3","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":"sha256:70c26619b65107644d2550d3b4ad25adf009170d08232bba991ddf7d85dc01b5","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ea8ba4f7c1552be2c2991f1c09af57546c098a4bdb03edde03deb8d0cbe407de","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"block":null,"heading":"Costs Related to Financing","paragraphs":[{"citation":"340-978-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_31B4CFE1-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs incurred by a seller that are related to financing, such as loan origination costs, shall be accounted for in accordance with Subtopic <a altsource=\"GUID-3B8EB2BA-D375-41D5-B2C1-DDCEAE2C53D7.ditamap\" class=\"ditamap\">310-20</a>. </span></span> </div> </div>","snippet":"Costs incurred by a seller that are related to financing, such as loan origination costs, shall be accounted for in accordance with Subtopic 310-20.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:214979ed46b925af55b6d3f14742d2e74123f2e26a756313ffc59b538b4045dd","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf8571c3bc2c8d8bf9121a61a1c6d8329cc71e81b1ac975caa547c015b25b186","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},{"block":null,"heading":"Costs to Rent Units During Holding Periods","paragraphs":[{"citation":"340-978-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_31B4D125-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Costs incurred to rent units during holding periods shall be deferred if they are both: </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_31B4D23A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Directly associated with, and their recovery is reasonably expected from, transactions involving the rental of units during holding periods </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_31B4D30A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Incremental, that is, the costs would not have been incurred by the seller had a particular <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> rental transaction not occurred. </span></span> </div> </li> </ol> <span class=\"sfragment\" id=\"sfr_31B4D3E4-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An example of a directly associated, incremental cost is a commission. Deferred costs to rent time-sharing units during holding periods shall be charged to expense, or netted in the reduction of inventory costs (as described in paragraph <a href=\"/asc/330/978/#330-978-35-3\" class=\"xref\">978-330-35-3</a>), in the period in which the rental takes place. </span></span> </div> </div>","snippet":"Costs incurred to rent units during holding periods shall be deferred if they are both:\n(a) Directly associated with, and their recovery is reasonably expected from, transactions involving the rental of units during hold…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e6bea17f5837f503331b8b641843de3c12786547156e1d2a57de576b5c13310","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8b15a6a1acde0d07e7dbeb9a7b477882d4bfb5369c2c75b709226861ce195b5b","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fbc94d50e55eb5dff15860d3f9672d35ac9359495d939e56a46a2504696321b","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fbc94d50e55eb5dff15860d3f9672d35ac9359495d939e56a46a2504696321b","downloaded_from":"2026-09-09T23:59:30.870Z","last_downloaded_at":"2026-09-09T23:59:30.870Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478452","source_sha256":"5c1ca13551fd62585e7f2af086190c1478df6b9c5517757fb6a447a4365f87bc"}}