# ASC 340-978-25: Other Assets and Deferred Costs — Real Estate—Time-Sharing Activities — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/978/#25-recognition) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:59:30.870Z to 2026-09-09T23:59:30.870Z Record version: sha256:4fbc94d50e55eb5dff15860d3f9672d35ac9359495d939e56a46a2504696321b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/340/978/#25-recognition) SEC content: no #### Costs to Sell Time-Sharing Intervals ##### [340-978-25-1](https://asc.understandingaccounting.org/asc/340/978/#340-978-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:30.870Z to 2026-09-09T23:59:30.870Z Record version: sha256:644106eeda32241e073185e86c7e219f0bf82eace2246a68eccf32afef56f6e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All costs incurred to sell [time-sharing](https://asc.understandingaccounting.org/glossary/t/#time-sharing "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.")[intervals](https://asc.understandingaccounting.org/glossary/i/#interval "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.") 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](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) . 1. a [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). 2. b [Subparagraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [340-978-25-2](https://asc.understandingaccounting.org/asc/340/978/#340-978-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:30.870Z to 2026-09-09T23:59:30.870Z Record version: sha256:ec36a391098874c1f99bbfa23f61511bc052583aeb4ea8ed9cba0dd4b9c701dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [340-978-25-3](https://asc.understandingaccounting.org/asc/340/978/#340-978-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:30.870Z to 2026-09-09T23:59:30.870Z Record version: sha256:70c26619b65107644d2550d3b4ad25adf009170d08232bba991ddf7d85dc01b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). #### Costs Related to Financing ##### [340-978-25-4](https://asc.understandingaccounting.org/asc/340/978/#340-978-25-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:30.870Z to 2026-09-09T23:59:30.870Z Record version: sha256:214979ed46b925af55b6d3f14742d2e74123f2e26a756313ffc59b538b4045dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Costs to Rent Units During Holding Periods ##### [340-978-25-5](https://asc.understandingaccounting.org/asc/340/978/#340-978-25-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:30.870Z to 2026-09-09T23:59:30.870Z Record version: sha256:0e6bea17f5837f503331b8b641843de3c12786547156e1d2a57de576b5c13310 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs incurred to rent units during holding periods shall be deferred if they are both: 1. a Directly associated with, and their recovery is reasonably expected from, transactions involving the rental of units during holding periods 2. b Incremental, that is, the costs would not have been incurred by the seller had a particular [holding period](https://asc.understandingaccounting.org/glossary/h/#holding-period "The period during which a time-sharing interval is held for sale. Sellers may offer time-sharing units for rent during such holding periods.") rental transaction not occurred. 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 [978-330-35-3](https://asc.understandingaccounting.org/asc/330/978/#330-978-35-3)), in the period in which the rental takes place.