{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/720/978/#05-overview-and-background","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":"720","topic_title":"Other Expenses","subtopic":"720-978","subtopic_title":"Real Estate—Time-Sharing Activities","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"720-978-05-1","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> recognition issues for other expenses. Other expenses may include selling costs, <a href=\"/glossary/s/#seller-subsidy\" class=\"term\" title=\"As related to time-sharing transactions, an amount that a seller pays to an owners association to cover net losses that may be incurred by the association.\"><span>seller subsidies</span></a>, and <a href=\"/glossary/o/#owners-association\" class=\"term\" title=\"A body of owners formed to administer the rules and regulations of a time-sharing project. Also denoted homeowners association, interval owners association, property owners association, or vacation owners association.\"><span>owners association</span></a> costs.</div></div>","snippet":"This Subtopic addresses real estate time-sharing recognition issues for other expenses. Other expenses may include selling costs, seller subsidies, and owners association costs.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64181cb192d4b18a544840928a35d176e99b0df835a5969b55b9527e6033aa3f","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}},{"citation":"720-978-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_33B4932E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/t/#time-share\" class=\"term\" title=\"See Interval.\"><span>Time-share</span></a> projects typically incur significant operating costs, such as costs of property taxes, repairs and maintenance, and reservation systems. Time-share owners are responsible for paying for the costs of owning their intervals. Because there are many time-share owners for a given <a href=\"/glossary/p/#project\" class=\"term\" title=\"A time-sharing development; some projects may be completed in a single phase, such as a single, one-story building containing several time-sharing units. Other projects may be completed in several phases, for example: A hotel that is being converted to time-sharing units one floor at a time while the unconverted units continue to be rented A number of buildings, each containing several time-sharing units, being built on a piece of property over an extended period of time.\"><span>project</span></a>, a centralized mechanism generally is used to collect each owner's share of those costs of ownership and to pay for operating costs. </span></span></div></div>","snippet":"Time-share projects typically incur significant operating costs, such as costs of property taxes, repairs and maintenance, and reservation systems. Time-share owners are responsible for paying for the costs of owning the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0d3ec12fea4af6977532b69b1cd2349130631cf0fd1c72cdb36fd0a7d98a2f3","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}},{"citation":"720-978-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_33B494D7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A time-share seller typically forms an owners association to manage the day-to-day operations of a project. Time-share owners pay assessments to the owners association. The activities of an owners association are governed by its bylaws and by a board of directors. Typically, an owners association will hire a manager to handle the day-to-day operations. Often, an affiliate of the original time-share seller is hired by an owners association to manage a project. Because the time-share seller owns a majority of units at the beginning of the sellout of a project, it typically will appoint members of the owners association's board of directors. </span></span></div></div>","snippet":"A time-share seller typically forms an owners association to manage the day-to-day operations of a project. Time-share owners pay assessments to the owners association. The activities of an owners association are governe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d6579a585d5c951f79357149360b6723b7a6bb775829d13565e9233c8ee5fec","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}},{"citation":"720-978-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_33B49635-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Selling and marketing costs are significant in relation to sales revenue, and sales incentives and inducements are common. </span></span></div></div>","snippet":"Selling and marketing costs are significant in relation to sales revenue, and sales incentives and inducements are common.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c5d3a56ac3ad87d48e3cccfc6d145184881c382c943e9371b7d28b79a1d2588a","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:55317c7252e4440f2948ab4d54a46dc37c0fbab0c7c4f21d76c20c0b56ae2f11","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b0df735dfba280b228eaa92e862ebd528cb438857c600d8e8383f2e4b87008b","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1b0df735dfba280b228eaa92e862ebd528cb438857c600d8e8383f2e4b87008b","downloaded_from":"2026-09-10T01:14:18.950Z","last_downloaded_at":"2026-09-10T01:14:18.950Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477557","source_sha256":"09e466f76571493c2dd33a7804b66c1a1e3901fbe1f2b5385f6074dc95f2558d"}}