{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/978/","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":"340-978","topic":"340","title":"Real Estate—Time-Sharing Activities","area":"Assets","paragraphs":11,"summary":"This Subtopic governs deferred cost recognition for real estate time-sharing activities. The default rule is that all costs incurred to sell time-sharing intervals are expensed as incurred unless they qualify for capitalization as incremental costs of obtaining a contract under 340-40-25-1 through 25-4. Seller financing costs (e.g., loan origination costs) follow Subtopic 310-20, and incremental costs to rent units during holding periods are deferred and then expensed (or netted against inventory) when the rental occurs.","concepts":["time-sharing intervals","costs to sell","incremental cost of obtaining a contract","holding period rental costs","deferred costs","loan origination costs","inventory cost reduction"],"categories":["Recognition","Industry-specific","Revenue","Inventory and PP&E"],"level":"intermediate","topic_title":"Other Assets and Deferred Costs","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-978-00-1","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=\"SL50392541-203120\"><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\"><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Superseded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\"><strong class=\"ph b\">Incidental Operations</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\"><strong class=\"ph b\">Phase</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\"><strong class=\"ph b\">Phase</strong> (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\"><strong class=\"ph b\">Project</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/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\"><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/340/978/#340-978-25-1\" class=\"xref\">978-340-25-1</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/340/978/#340-978-25-2\" class=\"xref\">978-340-25-2</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/340/978/#340-978-25-3\" class=\"xref\">978-340-25-3</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/340/978/#340-978-40-1\" class=\"xref\">978-340-40-1</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/340/978/#340-978-40-2\" class=\"xref\">978-340-40-2</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/340/978/#340-978-60-1\" class=\"xref\">978-340-60-1</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></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nDeposit Method | Superseded | Accounting Standards Update No. 2014-09 | 05/28/2014 |\nInc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:921a78acf7505050b376f73a8141df5b6e4ba9f1deadc127021336202667146b","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:19.735Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478613","source_sha256":"a37260bda52f1b17d5974e71b798f5bff804ee9bd1e09d01de64a0252bd95d62"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4fcb752845e43192866145bc4850bc2c5af47b3e7ce11e12963b41d122adb8b9","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:19.735Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478613","source_sha256":"a37260bda52f1b17d5974e71b798f5bff804ee9bd1e09d01de64a0252bd95d62"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58cbe80a8a1b9c1f1691105c30387824a349e951c3ebd1236ae392414faa9787","downloaded_from":"2026-09-09T23:59:19.735Z","last_downloaded_at":"2026-09-09T23:59:19.735Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478613","source_sha256":"a37260bda52f1b17d5974e71b798f5bff804ee9bd1e09d01de64a0252bd95d62"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-978-05-1","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> deferred cost recognition issues.</div></div>","snippet":"This Subtopic addresses real estate time-sharing deferred cost recognition issues.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a15d5480ca4daf29c1c4edad18254994ad81f78f4b0064ef56997865ba10b27c","downloaded_from":"2026-09-09T23:59:22.917Z","last_downloaded_at":"2026-09-09T23:59:22.917Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477306","source_sha256":"a73130df4b7129a4c979fc49da8a98efc7eb6a6e61b103a6f76abb5cb5d5c229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:908a2d6ef10536e997a4e13abf5255c17d150431c1f3b4db957c89b2c9056c67","downloaded_from":"2026-09-09T23:59:22.917Z","last_downloaded_at":"2026-09-09T23:59:22.917Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477306","source_sha256":"a73130df4b7129a4c979fc49da8a98efc7eb6a6e61b103a6f76abb5cb5d5c229"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c1308e8125aafde15fa72ed34b41990c95d44f8418596e00169d21eba5d0ee57","downloaded_from":"2026-09-09T23:59:22.917Z","last_downloaded_at":"2026-09-09T23:59:22.917Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477306","source_sha256":"a73130df4b7129a4c979fc49da8a98efc7eb6a6e61b103a6f76abb5cb5d5c229"}},{"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":"340-978-15-1","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>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:184f0804c0e190d0d161f34417a4a98fc28ffc97dd35b6c6f982e7596e383b9a","downloaded_from":"2026-09-09T23:59:26.348Z","last_downloaded_at":"2026-09-09T23:59:26.348Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478300","source_sha256":"9483687284a0385972445183df110172d1fb199ff70e33b32e22b226f248eca5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa8a9c9a19a880b4e90e05439ac7128df87c5109a9050d0369e0dbd32155feac","downloaded_from":"2026-09-09T23:59:26.348Z","last_downloaded_at":"2026-09-09T23:59:26.348Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478300","source_sha256":"9483687284a0385972445183df110172d1fb199ff70e33b32e22b226f248eca5"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29fb46e9801ba1a802ea2db1bf737f1ae0e926657025cfb573e913f943c44f40","downloaded_from":"2026-09-09T23:59:26.348Z","last_downloaded_at":"2026-09-09T23:59:26.348Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478300","source_sha256":"9483687284a0385972445183df110172d1fb199ff70e33b32e22b226f248eca5"}},{"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 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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:e49a98e67c135699f8e9fdcf562358d8ee9530bd936e4c9e83040a6cc719eeca","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478866","source_sha256":"5b774c039c0cc54092ff67a35e3b93b7f3d71a0f8a19cccd247031a3b40134e3"}},{"citation":"340-978-40-2","para":"40-2","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":"sha256:8a7e085305b02718f8796d8bc3b8b7c3e07d152a81c63f535b1f0b29b642fcfc","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478866","source_sha256":"5b774c039c0cc54092ff67a35e3b93b7f3d71a0f8a19cccd247031a3b40134e3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bc5708846c096dad302f8019e1d47734510405de38ac6a72cbefac7508f6885f","downloaded_from":"2026-09-09T23:59:33.693Z","last_downloaded_at":"2026-09-09T23:59:33.693Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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id=\"sfr_31DCEE0C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For expense determination of 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> see Subtopic <a altsource=\"GUID-4F83F042-87DA-40E8-BD1B-8C7D1BEED7DC.ditamap\" class=\"ditamap\">340-40</a> on the incremental cost of obtaining a contract with a customer. </span></span></div></div>","snippet":"For expense determination of all costs incurred to sell time-sharing intervals see Subtopic 340-40 on the incremental cost of obtaining a contract with a customer.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f8dc8bc9619c86a2b94d7878b2952ade18255b64a38691e065a2a75e8ec59fa8","downloaded_from":"2026-09-09T23:59:36.956Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478215","source_sha256":"2b0df994ebc6c72bdda3665e45126dad08967e73a50b0717dc2910dca46d2d0a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54a4d0287531728137d48eabb58ca4af0465d47abd980a19b19862c663816a83","downloaded_from":"2026-09-09T23:59:36.956Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478215","source_sha256":"2b0df994ebc6c72bdda3665e45126dad08967e73a50b0717dc2910dca46d2d0a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7469102ded7cd4413ee98a76655b6acf3df1db4e9a20657a09274c44b58063b0","downloaded_from":"2026-09-09T23:59:36.956Z","last_downloaded_at":"2026-09-09T23:59:36.956Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478215","source_sha256":"2b0df994ebc6c72bdda3665e45126dad08967e73a50b0717dc2910dca46d2d0a"}}],"enrichment":{"summary":"This Subtopic governs deferred cost recognition for real estate time-sharing activities. The default rule is that all costs incurred to sell time-sharing intervals are expensed as incurred unless they qualify for capitalization as incremental costs of obtaining a contract under 340-40-25-1 through 25-4. Seller financing costs (e.g., loan origination costs) follow Subtopic 310-20, and incremental costs to rent units during holding periods are deferred and then expensed (or netted against inventory) when the rental occurs.","key_points":["All costs incurred to sell time-sharing intervals shall be charged to expense as incurred unless they qualify for capitalization under paragraphs 340-40-25-1 through 25-4 (340-978-25-1).","Costs incurred by a seller related to financing, such as loan origination costs, are accounted for under Subtopic 310-20 (340-978-25-4).","Costs to rent units during holding periods are deferred only if they are both directly associated with rental transactions with recovery reasonably expected, and incremental to that transaction (340-978-25-5).","A commission is the cited example of a directly associated, incremental holding-period rental cost (340-978-25-5).","Deferred holding-period rental costs are charged to expense, or netted in the reduction of inventory costs per 978-330-35-3, in the period the rental takes place (340-978-25-5).","Much of the legacy time-sharing selling-cost deferral guidance (25-1(a)-(b), 25-2, 25-3, 40-1, 40-2) was superseded by ASU 2014-09, pushing analysis to Subtopic 340-40 (340-978-60-1)."],"categories":["Recognition","Industry-specific","Revenue","Inventory and PP&E"],"audience_level":"intermediate","student_note":"The exam trap is assuming time-sharing sellers still get the old industry-specific deferral of selling costs — ASU 2014-09 superseded that, so capitalization now depends solely on the 340-40 incremental-cost test, with expensing as the default. Remember the two distinct carve-outs: financing costs go to 310-20, and holding-period rental costs (like commissions) are deferred until the rental occurs.","related_topics":["340-40","978-10","978-330","310-20","606"],"key_concepts":["time-sharing intervals","costs to sell","incremental cost of obtaining a contract","holding period rental costs","deferred costs","loan origination costs","inventory cost reduction"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6ab0df747134e41936fd120e3061eddc5026d704c65d91bd68c0ae6eb1d14bf9","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"}},"related":[{"number":"330-978","title":"Real Estate—Time-Sharing 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Expenses","score":0.8316,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cb35a88782d4fb22e59d966e630f97bc6631f1aefab120dff2c494a21ecf2420","downloaded_from":"2026-09-10T01:14:14.996Z","last_downloaded_at":"2026-09-10T01:14:26.123Z","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":0.784,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b98bf330b610ac81a80295c0695f145d30ec211110e6af0abfb192014842f90c","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 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