# ASC 720-978-25: Other Expenses — Real Estate—Time-Sharing Activities — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/720/978/#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): 2026-09-10T01:14:26.123Z to 2026-09-10T01:14:26.123Z Record version: sha256:55d80b26ab9ed91597c0de755d3a0c39ea017ac3bae86c0f1a5ed4e096e98ac0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 720-978-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/720/978/#25-recognition) SEC content: no #### Selling Costs ##### [720-978-25-1](https://asc.understandingaccounting.org/asc/720/978/#720-978-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:14:26.123Z to 2026-09-10T01:14:26.123Z Record version: sha256:1176aaecec34252103bbbcd04f3663dc2d9c93a99b6712a25519a960a1c01c9f 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 shall be charged to expense as incurred unless they specifically qualify for capitalization under paragraphs [340-40-25-1 through 25-4](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) . ##### [720-978-25-2](https://asc.understandingaccounting.org/asc/720/978/#720-978-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:14:26.123Z to 2026-09-10T01:14:26.123Z Record version: sha256:b28f7195f7646a13fe4875733d163c582ca02f08bbb3d34a359f25ac689a59ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of costs that do not meet the requirements in paragraphs [340-40-25-1 through 25-4](https://asc.understandingaccounting.org/asc/340/40/#340-40-25-1) for capitalization, and that shall therefore be charged to expense as incurred, include all costs incurred to induce potential buyers to take sales tours (for example, the costs of telemarketing call centers); all costs incurred for unsuccessful sales transactions; and all sales overhead such as on-site and off-site sales office rent, utilities, maintenance, and telephone expenses. Advertising costs shall be accounted for in accordance with Subtopic 720-35. Direct incremental costs of tour fulfillment, such as costs of airline tickets to bring customers to a tour location, shall be charged to expense at the time the tour takes place. #### Seller Subsidies ##### [720-978-25-3](https://asc.understandingaccounting.org/asc/720/978/#720-978-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:14:26.123Z to 2026-09-10T01:14:26.123Z Record version: sha256:4fecca32af64fc10056e46164b2fdb42cbb4a71cefce76050bf756c4c7c940ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. During early stages of [project](https://asc.understandingaccounting.org/glossary/p/#project "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.") sellout, there are typically not enough dues-paying time-sharing [interval](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.") owners to support the financial obligations of the [owners association](https://asc.understandingaccounting.org/glossary/o/#owners-association "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."). Often a [time-share](https://asc.understandingaccounting.org/glossary/t/#time-share "See Interval.") seller, for a limited period of time, subsidizes the operations of the owners association rather than paying the dues or maintenance fees on the time-sharing intervals that it owns (that is, the unsold intervals in the project). Subsequent to that period, the time-share seller pays dues or maintenance fees on the time-sharing intervals that it owns. Payments by the seller of dues or maintenance fees, except when accounted for as [incidental operations](https://asc.understandingaccounting.org/glossary/i/#incidental-operations "Revenue-producing activities engaged in during the holding or development period to reduce the cost of developing the property for its intended use, as distinguished from activities designed to generate a profit or a return from the use of the property.") during holding periods under paragraphs [978-330-35-3 through 35-6](https://asc.understandingaccounting.org/asc/330/978/#330-978-35-3) , shall be charged to expense as incurred. Payments by the seller of additional amounts to subsidize losses shall be charged to expense as incurred. If a seller is contractually entitled to recover from the owners association all or a portion of its subsidy, the seller shall record a receivable only if recovery is probable and measurable with reasonable reliability.