# ASC 340-978: Other Assets and Deferred Costs — Real Estate—Time-Sharing Activities Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/340/978/) 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): 2026-09-09T23:59:19.735Z to 2026-09-09T23:59:36.956Z Record version: sha256:4bfed62072ab7497f7f1cb7fdda07a040a7f18120fdf0dec112261c0667f7bf2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978: Other Assets and Deferred Costs — Real Estate—Time-Sharing Activities ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-09T23:59:19.735Z to 2026-09-09T23:59:19.735Z Record version: sha256:58cbe80a8a1b9c1f1691105c30387824a349e951c3ebd1236ae392414faa9787 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/340/978/#00-status) SEC content: no ##### [340-978-00-1](https://asc.understandingaccounting.org/asc/340/978/#340-978-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:19.735Z to 2026-09-09T23:59:19.735Z Record version: sha256:921a78acf7505050b376f73a8141df5b6e4ba9f1deadc127021336202667146b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Deposit MethodSupersededAccounting Standards Update No. 2014-0905/28/2014
Incidental OperationsSupersededAccounting Standards Update No. 2014-0905/28/2014
PhaseSupersededAccounting Standards Update No. 2014-0905/28/2014
Phase (2nd def.)AmendedAccounting Standards Update No. 2014-0603/14/2014
ProjectSupersededAccounting Standards Update No. 2014-0905/28/2014
Time-SharingAmendedAccounting Standards Update No. 2014-0603/14/2014
Undivided Interest (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
978-340-25-1AmendedAccounting Standards Update No. 2014-0905/28/2014
978-340-25-2SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-25-3SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-40-1SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-40-2SupersededAccounting Standards Update No. 2014-0905/28/2014
978-340-60-1AmendedAccounting Standards Update No. 2014-0905/28/2014
Source downloaded (UTC): 2026-09-09T23:59:22.917Z to 2026-09-09T23:59:22.917Z Record version: sha256:c1308e8125aafde15fa72ed34b41990c95d44f8418596e00169d21eba5d0ee57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/340/978/#05-overview-and-background) SEC content: no ##### [340-978-05-1](https://asc.understandingaccounting.org/asc/340/978/#340-978-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:22.917Z to 2026-09-09T23:59:22.917Z Record version: sha256:a15d5480ca4daf29c1c4edad18254994ad81f78f4b0064ef56997865ba10b27c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic addresses real estate [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.") deferred cost recognition issues. Source downloaded (UTC): 2026-09-09T23:59:26.348Z to 2026-09-09T23:59:26.348Z Record version: sha256:29fb46e9801ba1a802ea2db1bf737f1ae0e926657025cfb573e913f943c44f40 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/340/978/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [340-978-15-1](https://asc.understandingaccounting.org/asc/340/978/#340-978-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:26.348Z to 2026-09-09T23:59:26.348Z Record version: sha256:184f0804c0e190d0d161f34417a4a98fc28ffc97dd35b6c6f982e7596e383b9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 978-10-15. 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. Source downloaded (UTC): 2026-09-09T23:59:33.693Z to 2026-09-09T23:59:33.693Z Record version: sha256:c5315d1853b52d3fbad630431dfeab7249a7f84f1c605684183311611354d2e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/340/978/#40-derecognition) SEC content: no ##### [340-978-40-1](https://asc.understandingaccounting.org/asc/340/978/#340-978-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:33.693Z to 2026-09-09T23:59:33.693Z Record version: sha256:e49a98e67c135699f8e9fdcf562358d8ee9530bd936e4c9e83040a6cc719eeca 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/). ##### [340-978-40-2](https://asc.understandingaccounting.org/asc/340/978/#340-978-40-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:33.693Z to 2026-09-09T23:59:33.693Z Record version: sha256:8a7e085305b02718f8796d8bc3b8b7c3e07d152a81c63f535b1f0b29b642fcfc 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/). Source downloaded (UTC): 2026-09-09T23:59:36.956Z to 2026-09-09T23:59:36.956Z Record version: sha256:7469102ded7cd4413ee98a76655b6acf3df1db4e9a20657a09274c44b58063b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 340-978-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/340/978/#60-relationships) SEC content: no ##### [340-978-60-1](https://asc.understandingaccounting.org/asc/340/978/#340-978-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:59:36.956Z to 2026-09-09T23:59:36.956Z Record version: sha256:f8dc8bc9619c86a2b94d7878b2952ade18255b64a38691e065a2a75e8ec59fa8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For expense determination of 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.") see Subtopic 340-40 on the incremental cost of obtaining a contract with a customer.